Jul 21, 2025 One Big Beautiful Bill: Challenges for Energy Efficiency and Renewables, Advantages for Other Tax Strategies
The One Big Beautiful Bill Act of 2025 (OBBBA) marks a major overhaul of federal tax policy, terminating or reshaping several high-impact incentives related to real estate, clean energy, and business investment.
The legislation ends the §45L Energy Efficient Home Credit for homes sold or leased after June 30, 2026, and phases out the §45X Advanced Manufacturing Credit for wind components and certain critical minerals. It also accelerates the phaseout of the §48E Clean Electricity Investment Tax Credit, establishing hard cutoffs for project eligibility.
While many incentives are curtailed, OBBBA makes permanent key business provisions, including 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025, and the immediate deduction of research expenses under §41.