Tax Planning
Tax Planning Strategy: Leveraging the One, Big, Beautiful Bill for Clean Energy Credits Before Termination
Several energy incentives under the recent OBBB law are ending soon — here's how to plan purchases or installations now to maximize credits while you still can.
By NomadicTax Research Team • 5-8 min read • March 2, 2026
## What Energy Credits Are At Risk & Deadlines Under OBBB
The **One, Big, Beautiful Bill (OBBB)** modified numerous energy credits and deductions, many of which are now **accelerating toward termination**. Key credits affected include:
| Credit / Deduction | Code Section | Termination Date |
|---|---|---|
| Energy Efficient Home Improvement Credit (25C) | § 25C | Properties placed in service **after Dec 31, 2025** ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))|
| Residential Clean Energy Credit (25D) | § 25D | Expenditures made after **Dec 31, 2025** ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))|
| Previously-Owned Clean Vehicles Credit (25E) | § 25E | Vehicles **acquired after Sept 30, 2025** ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))|
| New Clean Vehicle Credit | § 30D | Vehicles acquired after **Sept 30, 2025** ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))|
| Qualified Commercial Clean Vehicle Credit | § 45W | Also expires **Sept 30, 2025** ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))|
| Energy Efficient Commercial Buildings Deduction (179D) | § 179D | Property whose **construction begins after June 30, 2026** ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))|
## Plan Smart: Tax-Planning Moves Before Expirations
- **Accelerate purchases or installations** — If possible, purchase or install qualifying clean energy or efficient home improvements before Dec 31, 2025.
- **Contract acquisition date matters** — For vehicles and clean energy investment credits, acquiring via a binding contract and down payment before the deadline often secures the credit even if delivery or installation is later. ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))
- **Check “placed in service” rules** — Just acquiring doesn’t always trigger eligibility; the asset may need to be ‘placed in service’ depending on the credit. ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-act-obbba?utm_source=openai))
- **Keep all documentation** — Invoices, contracts, dealer reports, certification from manufacturers.
## Example
Maria plans to install solar panels on her home and purchase a clean electric vehicle. She signs a contract for solar installation on Dec 15, 2025, and the panels are placed in service in early 2026 — she likely qualifies for the §25D credit. She also purchases a qualifying used electric vehicle with a binding contract and payment by Sept 30, 2025 — so the §25E credit applies even if delivery is delayed.
## Action Plan Now
1. **Review upcoming tax returns** — see if you're planning improvements or vehicle purchases.
2. **Set deadlines** — decide cutoff dates for entering into contracts or making payments.
3. **Consult with a tax professional**, especially for commercial clean vehicle or 179D deductions which involve more complex qualifications.
4. **Watch guidance updates**, since the IRS may issue additional clarifications or extend certain forms of relief.
This is a window of opportunity. Acting before these credits expire can result in meaningful savings on your 2025-2026 tax returns, so plan accordingly.