Inside OBBBA: Key Changes to Energy & EV Tax Credits

As part of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, several critical changes have been made to federal energy and electric vehicle tax credits. These include faster expiration timelines, new eligibility restrictions, and heightened documentation requirements potentially impacting your current or future projects and purchases. Please review the following key deadlines and recommended next steps:

Key Deadlines & Action Items

• Electric Vehicle (EV) Credits (new, used & commercial vehicles) Credit eligibility ends for any vehicle acquired after September 30,  2025. Income and MSRP caps, as well as assembly and sourcing rules, remain enforced through this cutoff date.
• Residential Home Improvement Energy Credits (e.g., heat pumps, doors, windows) These credits terminate for expenses incurred after December 31, 2025.
• Residential Clean Energy Credits (e.g., solar, wind, energy storage) Credits are no longer available for expenses after December 31, 2025.
• Commercial Wind & Solar – Investment and Production Tax Credits Projects must begin construction by July 4, 2026, to qualify for credits—provided they are placed in service by December 31, 2027.
• Clean Hydrogen The hydrogen production credit now terminates significantly earlier than under the Inflation Reduction Act—by December 31, 2027.

What You Should Do Now?
If you are considering an energy project or EV purchase, now is the time to review your options. We can help you determine the steps needed to substantiate eligibility under the new rules. Please contact your Weiss tax advisor to discuss how these changes may affect you. Thoughtful planning today can help you maximize your financial position and set you up for future success.