Nathan Walker, CPA, MSA •
The One Big Beautiful Bill Act made a number of changes to energy tax credits, with many credits being eliminated or gradually phased out. Below is a high-level summary of what’s changing.
The One Big Beautiful Bill Act made a number of changes to energy tax credits, with many credits being eliminated or gradually phased out. Below is a high-level summary of what’s changing.
Business / Project Credits
Wind & Solar Investment Tax Credit (ITC) and Producer Tax Credit (PTC)
Residential Clean Energy Credit (solar, batteries, geothermal)
Wind & Solar Investment Tax Credit (ITC) and Producer Tax Credit (PTC)
- Projects must either begin construction by July 4, 2026, or
- Be placed in service by December 31, 2027
- After 2027, these credits are generally no longer available
- Stricter domestic content requirements
- New restrictions on certain foreign ownership or participation
- Longer recapture periods if requirements are later violated
- Increased documentation and diligence requirements
- Transfers are still allowed
- Additional limitations on eligible buyers now apply
- Largely preserved under the new rules
- Easier to model since they are output-based rather than installation-based
- Expected to become more valuable as installation credits phase out
Residential Clean Energy Credit (solar, batteries, geothermal)
- Ends for projects placed in service after December 31, 2025
- Expires on December 31, 2025
- Vehicles must be acquired by September 30, 2025
- Expires on June 30, 2026
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