U.S. Overhauls Clean Energy Incentives: What the “One Big Beautiful Bill” Means for Finnish Businesses

The One Big Beautiful Bill Act, signed into law on July 4, 2025, marks a dramatic shift in U.S. domestic policy and significantly alters the regulatory and funding landscape for energy and climate initiatives. At the heart of the Act are sweeping revisions to the Inflation Reduction Act (IRA), effectively scaling back many of the clean energy incentives and programs introduced in 2022. Businesses and investors operating in or entering the U.S. market will need to navigate these changes carefully to understand both the risks and emerging opportunities.

The Act repeals or rescinds funding for several high-profile IRA programs, including the Department of Energy’s Title 17 loan guarantees, the Advanced Technology Vehicles Manufacturing (ATVM) loan program, and the Energy Infrastructure Reinvestment (EIR) program. Billions of dollars in unobligated clean energy and climate-related funds have been redirected. Notably, the $27 billion EPA Greenhouse Gas Reduction Fund and numerous clean transportation and renewable energy grants have been eliminated. The methane emissions fee, which was set to increase substantially over the next few years, is paused for a decade, and royalties on methane extracted from federal leases are repealed. In their place, the legislation introduces a new $1 billion “Energy Dominance Financing” authority aimed at supporting traditional fossil fuel and critical mineral projects, reflecting a renewed federal emphasis on conventional energy production.

For businesses in the renewable energy and clean technology sectors, these changes present clear challenges. Companies that have relied on IRA-backed incentives, tax credits, or loan guarantees may find key programs unavailable or significantly scaled back. However, the legislation’s focus on fossil fuel development, critical minerals, and infrastructure expansion may create opportunities for firms that supply equipment, technology, or expertise in these areas. Finnish companies entering or expanding in the U.S. market – particularly those in energy, advanced manufacturing, and critical minerals – should reassess their U.S. strategies in light of the new policy direction.

The Act also introduces broader policy changes with implications beyond energy. Tax reforms include permanent extensions of certain individual and business tax rates, modifications to international tax provisions affecting multinational corporations, and an enhanced child tax credit. Healthcare provisions impose stricter Medicaid eligibility requirements, expand access to Health Savings Accounts (HSAs), and create a $50 billion Rural Health Transformation Program. These developments, combined with substantial increases in U.S. defense and infrastructure spending, could affect Finnish companies across multiple industries, from health technology and manufacturing to defense supply chains and logistics.

As the U.S. regulatory environment pivots, companies doing business in the United States will need to navigate a complex and rapidly evolving landscape. Our team at Borenius is closely monitoring the implementation of the One Big Beautiful Bill and stands ready to advise businesses on the legal, tax, and strategic implications of these changes. Contact us to discuss how your operations or planned investments may be affected and how to position your business for success in this new environment.

If you have any questions about this Legal Alert, please feel free to contact the undersigned or your regular Borenius contact.