JinkoSolar (JKS) saw its stock price plummet by 5.22% in pre-market trading on Thursday, as investors reacted to the advancement of President Donald Trump's sweeping tax bill in the U.S. House of Representatives. The proposed legislation poses a significant threat to the solar industry by potentially eliminating crucial green-energy subsidies that have supported the sector's growth.

The tax bill, which Trump refers to as "one big beautiful bill," includes provisions that would terminate funding established under the Biden Administration's Inflation Reduction Act. Of particular concern to solar companies is the proposed elimination of the 30% federal tax credit for homeowners who install rooftop solar systems. This subsidy has been a key driver of the industry's expansion over the past decade, helping to create over 100,000 jobs in the sector.

JinkoSolar's decline is part of a broader selloff in solar stocks, with industry peers experiencing even steeper drops. Sunrun led the market rout with a fall of up to 33%, while other major players like SolarEdge Technologies, Enphase Energy, and First Solar saw declines ranging from 6.5% to 15.6%. The industry now turns its attention to the Senate, hoping for a reversal of these proposed changes as the bill moves through the legislative process. Analysts note that solar and wind industries are expected to lobby actively against these revisions, underscoring the high stakes for the renewable energy sector in the face of potential policy shifts.