Which Energy Credits and deductions are expiring under OBBB
The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, drastically accelerated the termination dates of several energy tax credits and deductions established or expanded under the Inflation Reduction Act of 2022 (IRA).
Individual clean energy credits
- New Clean Vehicle Credit (IRC § 30D): Expires for vehicles acquired after September 30, 2025. The IRA had previously extended this up to $7,500 credit through 2032.
- Previously-Owned Clean Vehicle Credit (IRC § 25E): Expires for vehicles acquired after September 30, 2025. The credit was worth up to $4,000 under the IRA.
- Residential Clean Energy Credit (IRC § 25D): Terminates for expenditures made after December 31, 2025. The credit offered up to 30% for installing renewable energy systems and was originally scheduled to run through 2034.
- Energy Efficient Home Improvement Credit (IRC § 25C): Terminates for property placed in service after December 31, 2025. This credit provides up to $3,200 annually for qualifying home improvements and was scheduled to expire after 2032 under the IRA.
Business and commercial clean energy provisions
The OBBBA also accelerated the termination dates for several business and commercial clean energy provisions, including credits for clean vehicles, alternative fuel vehicle refueling property, energy-efficient commercial buildings, new energy-efficient homes, clean electricity investment and production, clean hydrogen production, and advanced manufacturing. Specific termination or ineligibility dates range from September 30, 2025, through December 31, 2027, with some advanced manufacturing credits phasing out later.