There are key provisions in the One Big Beautiful Bill (OBBB) that have implications on investing in green energy related projects and assets.
H.R. 1, formally titled “An Act to provide for reconciliation pursuant to Title II of H. Con. Res. 14,” commonly referred to as the One Big Beautiful Bill, spans more than 1,100 pages and introduces sweeping changes across the tax landscape.
Our previous articles took a closer look at how the One Big Beautiful Bill affects businesses and tax-exempt organizations in one piece, individual taxpayers along with estate and gift taxes in another, on state tax changes and what was left out of the final version of the bill in a third, followed by implications for businesses with international exposure. In this article, we highlight some of the green energy credits being terminated.
The Impact on Green Energy Credits
Many green energy credits are being eliminated by OBBB, some sooner than others. Individuals and businesses who were planning on utilizing these credits may need to take action soon before the deadlines. The following credits have been terminated:
- Previously Owned Clean Vehicle Credit – Terminates for vehicles acquired after 9/30/2025.
- Clean Vehicle Credit – Terminates for vehicles acquired after 9/30/2025.
- Qualified Commercial Clean Vehicles Credit – Terminates for vehicles acquired after 9/30/2025.
- Alternative Fuel Vehicle Refueling Property Credit – Terminates for property placed in service after 6/30/2026.
- Energy-Efficient Home Improvement Credit – Terminates for property placed in service after 12/31/2025.
- Residential Clean Energy Credit – Terminates for expenditures made after 12/31/2025.
- New Energy-Efficient Home Credit – Terminates for any qualified new energy-efficient home acquired after 6/30/2026.
It’s important to appreciate the distinction in the terminology used in the termination provisions (“acquired” versus “placed in service” for example).
Note that there are other green energy changes brought by OBBB that are of limited applicability to our clients and are not addressed here.
If you have questions about how the OBBB may affect you or your organization, please reach out to us at [email protected].
This article is part of our ongoing series on the potential impact of the One Big Beautiful Bill. You may view our full library on our OBBB Resource Center.
About Schneider Downs Tax Services
Schneider Downs’ tax advisors have experience and expertise in a wide range of industries, including Automotive, Construction, Real Estate, Manufacturing, Energy & Resources, Higher Education, Not-for-profits, Transportation and others. Our industry knowledge and focus ensure the delivery of technical tax strategies that can be implemented as practical business initiatives.
To learn more, visit our dedicated Tax Services page.
