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) |
| Residential Clean Energy Credit (25D) | § 25D | Expenditures made after Dec 31, 2025 (irs.gov) |
| Previously-Owned Clean Vehicles Credit (25E) | § 25E | Vehicles acquired after Sept 30, 2025 (irs.gov) |
| New Clean Vehicle Credit | § 30D | Vehicles acquired after Sept 30, 2025 (irs.gov) |
| Qualified Commercial Clean Vehicle Credit | § 45W | Also expires Sept 30, 2025 (irs.gov) |
| Energy Efficient Commercial Buildings Deduction (179D) | § 179D | Property whose construction begins after June 30, 2026 (irs.gov) |
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)
- 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)
- 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
- Review upcoming tax returns — see if you're planning improvements or vehicle purchases.
- Set deadlines — decide cutoff dates for entering into contracts or making payments.
- Consult with a tax professional, especially for commercial clean vehicle or 179D deductions which involve more complex qualifications.
- 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.