U.S. taxpayers looking to take advantage of the current clean energy tax incentives should act soon, as several individual- and business-related tax breaks will be scaled back or eliminated completely due to the latest One Big Beautiful Bill Act (OBBBA).

Here’s a closer look at some of the individual and business clean energy tax incentives impacted by the OBBBA to consider as part of your year-end tax planning. 

Business Impact 

Key changes for businesses who qualify for clean energy tax breaks include: 

• Alternative Fuel Vehicle Refueling Property Credit (Sec. 30C): This credit for property that stores or dispenses clean-burning fuel or recharges electric vehicles will become unavailable sooner than originally set by the Inflation Reduction Act (IRA). The credit — worth up to $100,000 per item (each charging port, fuel dispenser or storage property) — had been scheduled to sunset after 2032. Under the OBBBA, property must be placed in service on or before June 30, 2026, to qualify for the credit.
• Section 179D Energy Efficient Commercial Buildings Deduction: The OBBBA eliminates this credit for buildings or systems on which the construction begins after June 30, 2026. The deduction has been around since 2006, but the IRA substantially boosted the size of the potential deduction and expanded the pool of eligible taxpayers.
• Clean Electricity Investment Credit (Sec. 48E) and Clean Electricity Production Credit (Sec. 45Y): Both credits are eliminated for wind and solar facilities placed in service after 2027, unless construction begins on or before July 4, 2026. Wind and solar projects begun after that date must be put in service by the end of 2027.
• Advanced Manufacturing Production Credit (Sec. 45X): Wind energy components won’t qualify for this credit after 2027. The law also modifies the credit in other ways. For example, it adds “metallurgical coal” suitable for the production of steel to the list of critical minerals. And, for critical materials other than metallurgical coal, the credit will now phase out from 2031 through 2033. The credit for metallurgical coal expires after 2029.

Keep in mind, the OBBBA permits taxpayers to transfer clean energy credits while the credits are still available (restrictions apply to transfers to “specified foreign entities”).

Individual Impact 

Although the OBBBA eliminates several tax credits that have benefited eligible individual taxpayers, there is a short “grace period” before they expire, which provides a window to take advantage of the credits. These include: 

• Energy Efficient Home Improvement Credit (Section 25C). This was scheduled to expire after 2032, but it’s now only available for eligible improvements put into service by Dec. 31, 2025. The IRA increased the credit amount to 30% and offers limited credits for exterior windows, skylights, exterior doors and home energy audits.
• Residential Clean Energy Credit (Sec. 25D). This was scheduled to expire after 2034, but it’s also now available only through Dec. 31, 2025. The IRA boosted the credit to 30% for eligible clean energy improvements made between 2022 and 2025. The credit is available for installing solar panels or other equipment to harness renewable energy sources like wind, geothermal or biomass energy.

Clean Vehicle Credits

If you’ve been pondering the purchase of a new or used electric vehicle (EV), you’ll want to buy sooner rather than later to take advantage of available tax credits. 

• Clean Vehicle Credit (Sec. 30D): Under the OBBBA, the credit is available only through Sept. 30, 2025 (originally scheduled to expire after 2032). The IRA significantly expanded the credit for qualifying clean vehicles placed in service after April 17, 2023. For eligible taxpayers, it extended the credit to any “clean vehicle,” including EVs, hydrogen fuel cell cars and plug-in hybrids. The maximum credit for new vehicles is $7,500, based on meeting certain sourcing requirements for 1) critical minerals and 2) battery components. Clean vehicles that satisfy only one of the two requirements qualify for a $3,750 credit.
• Sec. 25E: The IRA created this new credit for eligible taxpayers who buy used clean vehicles from dealers. The credit equals the lesser of $4,000 or 30% of the sale price. It also expires on Sept. 30, 2025.
• Qualified Commercial Clean Vehicle Credit (Sec. 45W): The OBBBA targets this incentive, which is for a business’s use of clean vehicles. It was scheduled to expire after 2032, but it’s now available only for vehicles acquired on or before Sept. 30, 2025. Depending on vehicle weight, the maximum credit is up to $7,500 or $40,000.

Other Limitations 

The OBBBA also limits access to the remaining clean energy credits for projects involving “foreign entities of concern” and imposes tougher domestic content requirements. We can help you plan for accelerated expiration dates on repealed clean energy incentives and comply with the new restrictions going forward. To obtain assistance with strategic tax planning for these clean energy incentives, contact us below.