Termination of Clean Energy Credits( Clean Vehicle, Clean Electricity, etc.) |
Credits for clean vehicles, clean electricity, and related property were available through 2032 or later. |
Credits for clean vehicles, clean electricity production / investment, and related property are terminated for property placed in service / acquired after specified 2025 – 2027 dates. |
Reduces or eliminates federal tax incentives for new clean energy investments, potentially increasing after-tax costs for businesses in these sectors. |
Termination of Energy Efficient Home Improvement and Commercial Building Credits |
Credits for energy efficient home improvements and commercial buildings were available through 2032. |
Credits terminated for property placed in service after December 31, 2025( home improvement) or construction beginning after June 30, 2026( commercial buildings). |
Removes incentives for energy efficiency upgrades, potentially reducing business investment in such improvements. |
Termination of Cost Recovery for Energy Property |
Accelerated depreciation for energy property was available. |
Accelerated depreciation for energy property terminated for property construction beginning after December 31, 2024. |
Increases after-tax cost of energy property investments, potentially discouraging new projects. |
Restrictions on Clean Electricity Production and Investment Credits |
Clean electricity production( IRC § 45Y) and investment( IRC § 48E) credits available through 2032. |
Credits terminated for wind / solar facilities placed in service after December 31, 2027; new restrictions for foreign entities / materials; recapture and anti-abuse rules added. |
Shortens window for new projects to qualify, adds compliance burdens, and restricts access for foreigninfluenced businesses. |