Articole | | Încărcat de: Peter Lawrence
The Final One Big Beautiful Bill Act is Bad News for Solar, Wind, Home Energy Efficiency, Other Clean Energy Tax Credits
The U.S. House of Representatives passed July 3 H.R. 1, the fiscal year 2025 reconciliation bill known as the One Big Beautiful Bill Act (OBBBA), 218-214, following its passage in the Senate July 1 and meeting President Trump’s July 4 deadline. The bill represents a major legislative milestone for the administration, Republicans and the clean energy industry. While the administration may be celebrating this as a victory, most of the clean energy sector will be scrambling to adapt to the sudden elimination and rollback of key tax incentives that have been integral to the growth of renewable resources and other clean energy technologies, a growth that has exponentially increased since the passage of the Inflation Reduction Act (IRA).
The following discussion details the final versions of the Internal Revenue Code (IRC) Sections 48E (technology-neutral) clean electricity investment tax credit (ITC), and 45Y, clean electricity production tax credit (PTC), and provides a comparison summary of the Senate version of the other key programs, including Sections 45X manufacturing, 45V hydrogen tax credits, the housing-related tax incentives and the electric vehicle (EV) related credits, as well as other provisions of note.
Previous Notes from Novogradac posts detailed the House-passed bill and initial Senate Finance Committee (SFC) bill introduced June 16, including the fate of the bonus credit programs and a detailed comparison summary of the foreign entities of concern (FEOC) restrictions.
Sections 48E ITC, 45Y PTC
In the final version of the OBBBA, the credits are fully restored and available to all other energy generation technologies that produce less than zero emissions through the firmer phase-out schedule from 2032 to 2036, established by the SFC’s original bill. In exchange, they are still quickly repealed for solar and wind, with the reinstitution of the placed-in-service threshold and little to no exceptions, but for energy storage under Section 48E, and a 12-month start of construction grace period.