The OBBBA: Changes and Impact on Clean Energy Tax Credits
Key Ideas
  • The One Big Beautiful Bill Act (OBBBA) brings significant changes to clean energy tax credits, including clean hydrogen PTC and advanced manufacturing credits.
  • Key changes include an accelerated phase-out of various tax credits, new restrictions on foreign entities, and denial of certain credits for small wind leasing arrangements.
  • The OBBBA accelerates the phase-out of the clean hydrogen PTC and introduces modifications to the beginning of construction deadlines for various projects.
  • Restrictions on foreign entities and investors are included in the OBBBA, affecting eligibility for clean energy tax credits and other incentives.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, impacting clean energy tax credits and related incentives. The OBBBA introduces accelerated phase-out provisions for several credits, including the clean energy ITC (CEITC) and PTC (CEPTC), clean hydrogen PTC, and advanced manufacturing credits. Key changes involve modifying beginning of construction deadlines, restrictions on foreign entities, and denial of certain credits for specific arrangements. The clean hydrogen PTC faces an accelerated phase-out with a revised construction deadline of January 1, 2028. The OBBBA also introduces restrictions on foreign entities, impacting eligibility for various tax credits like the CEITC, CEPTC, and carbon capture credits. Overall, the OBBBA aims to reshape the clean energy landscape by incentivizing timely project development and aligning with broader energy policy goals.
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