On July 3, the House of Representatives voted 218–214 to pass the final version of H.R. 1, the “One Big Beautiful Bill Act (OBBBA).” The House adopted the Senate version without changes, expediting revisions to clean energy tax credits first enacted under the Inflation Reduction Act (IRA) of 2022. Businesses and investors with renewable energy portfolios should take note of the following changes.
Enacted on July 4, H.R. 1 accelerates the phase-out of the clean electricity investment (§48E) and production (§45Y) tax credits for wind and solar projects by narrowing the eligibility rules for when projects must begin construction and be placed in service. The bill also increases domestic content requirements and codifies existing IRS “beginning of construction” guidance (Notices 2013-29 and 2018-59). OBBBA phases out wind components under the §45X manufacturing credit and adds an accelerated phase-out schedule for critical minerals.
H.R. 1 reshapes IRA clean energy tax credits by shortening deadlines, phasing out credits faster, and adding restrictions on foreign involvement. To stay eligible under the new law, clean energy developers and manufacturers should act quickly to adjust project plans and supply chains.
See our H.R. 1 Effect on IRA Clean Energy Credits series for more details.
