Jul 17, 2025 48E Investment Tax Credit Phaseout

The One Big Beautiful Bill Act (OBBBA) effectively ends the long-term availability of the Section 48E Clean Electricity Investment Tax Credit (ITC) by imposing hard deadlines and accelerating its phase-out. For solar and wind facilities, projects must begin construction by July 4, 2026, to remain eligible for the Section 48E credit. Projects that start construction after this date must be placed in service no later than December 31, 2027, in order to qualify.

For all other qualified technologies—including energy storage—the OBBBA accelerates the general phase-out of the credit. Projects that begin construction before 2034 are eligible for 100% of the credit. Projects starting in 2034 qualify for 75%, and those beginning in 2035 receive 50%. No credit is available for projects in 2036 or later.