H.R. 1, the “One Big Beautiful Bill Act (OBBBA),” accelerates the timeline and tightens the eligibility rules for several clean energy tax credits originally enacted under the Inflation Reduction Act (IRA). Here’s a closer look at the key changes:

Section 48E – Clean Electricity Investment Credit

  • Sunsets for wind and solar: Facilities placed in service (PIS) after December 31, 2027, are ineligible unless construction begins within 12 months of enactment (i.e., by July 4, 2026).
  • Other eligible technologies (e.g., geothermal, hydro, nuclear, clean hydrogen) now follow this phase-out schedule:
    • 100% credit in 2033
    • 75% in 2034
    • 50% in 2035
    • 0% in 2036

Section 45Y – Clean Electricity Production Credit

  • Sunsets for wind and solar deadline: Projects must be PIS by December 31, 2027, unless construction starts within 12 months of enactment (i.e., by July 4, 2026).
  • Projects that begin construction by July 4, 2026, are granted a 4-year PIS window.
  • Other non-wind/solar facilities follow the same phase-out schedule as §48E:
    • 100% in 2033
    • 75% in 2034
    • 50% in 2035
    • 0% in 2036