The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, brings both opportunities and deadlines for businesses investing in clean energy. While the legislation extends or enhances several tax benefits, it also accelerates the expiration of key incentives—meaning businesses must act quickly to take full advantage.
Qualified Commercial Clean Vehicle Credit (Section 45W)
Originally set to expire in 2032, the Qualified Commercial Clean Vehicle Credit is now only available for vehicles acquired on or before September 30, 2025. Businesses planning to invest in clean transportation should move fast to secure this benefit.
Energy-Efficient Building Improvements: Section 179D Deduction
The Section 179D deduction allows commercial building owners to immediately deduct the cost of qualifying energy-efficient improvements instead of depreciating them over 39 years. However, under the OBBBA, this deduction will no longer apply to properties beginning construction after June 30, 2026.
Who Qualifies?
- Commercial building owners
- Tenants and REITs making qualifying improvements
- Designers (architects, engineers) of government or nonprofit-owned buildings
Eligible Properties and Improvements
- New construction, renovations, or additions to commercial buildings of any size
- Multifamily residential rental buildings (minimum four stories above grade)
- Improvements to lighting systems, HVAC and hot water systems, and building envelopes
Energy Savings Requirements
To qualify, improvements must reduce annual energy and power costs by at least 25% compared to industry standards, certified by a licensed engineer or independent contractor.
Deduction Amounts
Additional Clean Energy Tax Credits Impacted by OBBBA
Section 30C: Alternative Fuel Vehicle Refueling Property Credit
- Ends for property placed in service after June 30, 2026
- Applies to equipment that stores/dispenses clean-burning fuel or recharges EVs
- Credit value: Up to $100,000 per item
Sections 48E & 45Y: Clean Electricity Investment and Production Credits
- Ends for wind and solar facilities placed in service after 2027
- Construction must begin on or before July 4, 2026
Section 45X: Advanced Manufacturing Production Credit
- Wind energy components excluded after 2027
- Adds “metallurgical coal” to list of critical minerals (expires 2029)
- Other critical materials phase out between 2031–2033
Take Action Before Incentives Expire
Many of these clean energy tax breaks are ending years earlier than expected. If your business is considering clean energy investments, now is the time to act. We can help you:
- Assess eligibility
- Maximize available tax incentives
- Structure projects to meet compliance requirements
Contact us today to ensure you don’t miss out on these valuable opportunities.
© 2025