Energy Tax Credits

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (OBBB), which largely repeals the energy tax credits enacted under the Inflation Reduction Act. The law does this by accelerating phase-outs and expiration dates, prohibiting transfers of credits, and implementing new restrictions for companies that have associations with a foreign entity of concern (FEOC). Notably, the final legislation did not include a controversial excise tax of up to 50% for wind and 30% for solar investments that exceed a “material assistance” cost ratio for materials obtained from certain foreign entities.

A summary of the key energy tax provisions in the final bill is here. This page will be updated with more in-depth discussions of the provisions and the related technologies.