Expiring Energy Tax Credits: What Businesses Need to Know

As part of the recently passed One Big Beautiful Bill Act (OBBBA), several federal clean energy tax credits for businesses are set to expire or change significantly in the coming years. If your business is planning construction, equipment upgrades, or sustainability investments, now is the time to evaluate your eligibility.

Note that we recently shared a separate update for individual taxpayers who may be considering home energy improvements or electric vehicle purchases. If this is relevant to you, we encourage you to review that summary as well.

FOR BUSINESSES, HERE ARE THE MAJOR CREDITS IMPACTED:

Section 45W – Commercial Clean Vehicle Credit. This credit provides up to $7,500 or $40,000 per vehicle, depending on vehicle weight. It was previously set to run through 2032, but under the OBBBA, it is now only available for vehicles acquired on or before September 30, 2025.

Section 30C – Alternative Fuel Refueling Property Credit. This credit, which covers EV charging station installations and related infrastructure, was originally scheduled to sunset after 2032. Under the OBBBA, however, eligible property must now be placed in service on or before June 30, 2026 in order to qualify.

Section 179D – Energy Efficient Commercial Buildings Deduction. The deduction is eliminated for buildings or systems that begin construction after June 30, 2026, cutting off a key incentive for energy-efficient design and retrofits unless projects meet this construction timeline.

Section 45X – Advanced Manufacturing Production Credit. The OBBBA narrows the scope of eligible components. For example, wind energy components will no longer qualify after 2027, and the list of qualifying critical minerals has been revised, potentially reducing the benefit for some clean tech manufacturers.

Section 45Y/48E – Clean Electricity Credits. These new credits for wind and solar facilities are repealed under the OBBBA. Facilities placed in service after 2027 will no longer qualify unless construction begins on or before July 4, 2026. For projects starting after that date, they must be placed in service by December 31, 2027 to remain eligible.

WHAT’S NEXT?

If your business plans to claim one or more energy-related tax credits, it’s important to be aware of the upcoming expiration dates. Many of these incentives are expiring in or after 2025. Reviewing your plans can help ensure you don’t miss out on valuable tax savings. The experienced team at PP&Co can help. Contact us at info@ppandco.com or (408) 287-7911 if you have questions or want to discuss how these updates may affect your specific tax situation.