Understanding the Timing of the New One Big, Beautiful Bill Act
Understanding the Timing of the New One Big, Beautiful Bill Act
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Repeal Dates of Various Energy Credits and Incentives |
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Credit |
Repeal Date |
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IRC §25E Previously Owned Clean Vehicle Credit |
Repealed for vehicles acquired after September 30,2025 (OBBA §70501; IRC §25D(g)) |
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IRC §30D Clean Vehicle Credit |
Repealed for vehicles acquired after September 30,2025 (OBBA §70502; IRC §30D(h)) |
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IRC §45W Qualified Commercial Clean Vehicle Credit |
Repealed for vehicles acquired after September 30,2025 (OBBA §70503; IRC §45D(g)) |
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IRC §30C Alternative Fuel Vehicle Refueling Property Credit |
Repealed for property placed in service after June 30, 2026 (OBBBA §70504; IRC §30C(i)) |
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IRC §25C Energy Efficient Home Improvement Credit |
Repealed for property placed in service after December 31, 2025 (OBBBA §70505; IRC §25C(h)) |
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IRC §25D Residential Clean Energy Credit (aka Home Solar Credit) |
Repealed with respect to any expenditures made after December 31, 2025 (OBBBA §70506; IRC §25D(h)) |
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IRC §179D Energy Efficient Commercial Buildings Deduction |
Repealed with respect to property the construction of which begins after June 30, 2026 (OBBBA §70507; IRC §179D(i)) |
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IRC §45L New Energy Efficient Home Credit |
Repealed for homes acquired after June 30, 2026 (OBBBA §70508; IRC §45L(h)) |
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IRC §168(e)(3)(B)(vi) Five-year recovery period for energy property |
Repeals the five-year recovery period for energy property applicable to property the construction of which begins after December 31, 2024 (OBBBA §70509; IRC §168(e)(3)(B)(vi)) |
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IRC §48E Clean Electricity Investment Credit and IRC §45Y Clean Electricity Production Credit |
Applicable to facilities for which construction begins after July 4, 2026, the credits are repealed for wind and solar technology for facilities placed in service after 2027. This means the post-2027 repeal date does not apply if the construction of the facility begins no later than July 4, 2026. However, the early termination does not apply to energy storage technology for purposes of the IRC 48E Investment Credit. In addition, OBBBA tightens restrictions regarding sourcing supplies from foreign entities of concern for facilities that begin construction after December 31, 2025. Finally, the credit is no longer available to taxpayers who lease the property to a third-party, applicable to taxable years beginning after July 4, 2025 (date of OBBBA’s enactment) (OBBBA §§70512, 70513; IRC §§45Y, 48E) |