The Senate bill cancels clean energy tax credits and imposes new taxes on wind and solar energy and increases coal credits, which angered the industry.

The amended budget bill by the U.S. Senate is receiving scathing reviews among clean energy enthusiasts since it is geared towards repealing major tax credits to the wind and solar energy industries ever since 2005. The draft legislation, which would be voted on this weekend with accelerated consideration, would introduce a new tax on clean energy projects that finish after December 31, 2027, unless the developers can demonstrate that they have not used Chinese constituents at all.

The act also provides new coal tax subsidies and speeds the curtailment of clean manufacturing credits. These credits have drawn billions of investments in the U.S., especially in the states that are led by the Republicans.

The changes, the industry experts say, will drive up the energy costs and block clean energy expansion at the time that demand is up due to the building of data centers and the development of AI. An energy security organization, SAFE, has accused the bill of giving a competitive edge to China as the bill negates American advancement in energy storage and processing of essential minerals.

The CEO of Tesla, Elon Musk, criticized the bill, terming it as harmful to the industries in the future it will lie down. In the meantime, those who oppose green energy celebrated the decision, as Donald Trump has offered an agreement that the subsidies of clean energy must be terminated.