Renewable capacity buildoutTechnology deployment
0.85Weakened80% impact weight
Accelerating the phase-out of solar and wind tax credits removes the principal federal subsidy underpinning continued renewable buildout.
legislationneeds reviewconfidence: medium
One Big Beautiful Bill Act accelerates phase-out of US clean-energy tax credits
Signed into law on 4 July 2025, the One Big Beautiful Bill Act rolled back many of the clean-energy tax incentives created by the 2022 Inflation Reduction Act. The law accelerated the phase-out of wind and solar production and investment tax credits, requiring projects to begin construction within roughly a year or be placed in service by the end of 2027 to qualify, and ended the residential solar tax credit (Section 25D) on 31 December 2025. A follow-up executive order directed Treasury to strictly enforce the termination of the 45Y and 48E credits for wind and solar.
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What happened
Signed into law on 4 July 2025, the One Big Beautiful Bill Act rolled back many of the clean-energy tax incentives created by the 2022 Inflation Reduction Act. The law accelerated the phase-out of wind and solar production and investment tax credits, requiring projects to begin construction within roughly a year or be placed in service by the end of 2027 to qualify, and ended the residential solar tax credit (Section 25D) on 31 December 2025. A follow-up executive order directed Treasury to strictly enforce the termination of the 45Y and 48E credits for wind and solar.
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