What’s Ending & What’s Staying

The One Big Beautiful Bill Act delivers a sweeping rollback of many green energy incentives while preserving and reshaping a few targeted programs. Whether you're an investor, developer, or manufacturer, these changes could significantly impact how you approach clean energy and efficiency projects.

Clean Energy Credits: Most Are Gone

OBBBA eliminates or phases out the majority of clean energy tax credits that were expanded or introduced under prior legislation. This includes the expiration of credits for:

• Solar and wind energy
  
  
• Electric vehicles (EVs)
  
  
• Energy-efficient home upgrades and appliances
  
  
• Commercial energy efficiency improvements
  
  

These credits were often used by businesses and individuals alike to reduce the upfront costs of adopting green technologies. Their sunset could reshape the economics of such investments moving forward.

What Remains (For Now)

A few key incentives survive, with limitations:

• Clean Fuel Production Credit
  
  
• Advanced Manufacturing Credit
  
  
• Certain Carbon Capture and Storage Incentives
  
  

However, even these are subject to new caps, restrictions, or eligibility requirements. In many cases, the availability of the credits is narrowed or now excludes businesses with foreign affiliations or operations.

International Restrictions

OBBBA introduces specific limitations on green energy credits for taxpayers with foreign ties:

• No credit allowed for taxpayers who are “foreign-parented” or have significant foreign ownership
  
  
• Potential compliance burdens for multinational entities or those involved in cross-border partnerships
  
  

Planning Implications

Businesses that previously relied on green credits for project feasibility may need to reconsider timelines, budgets, or financing options. Additionally, manufacturers of energy-efficient products should closely evaluate how these changes could affect market demand.

If you're currently involved in an energy project, or planning one, now is the time to revisit your tax strategy.

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