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OBBBA Is Ending the Federal Clean-Energy Tax Credits: The 2025-2026 Cutoff Calendar (Jul 2026)
The One Big Beautiful Bill Act terminates nine federal clean-energy tax credits on a rolling schedule between September 2025 and mid-2026. Here are the exact cutoff dates and what REG and TCP candidates should know.
Published July 15, 20266 min readVerified as of July 15, 2026
The Short Version: Three Cutoff Dates
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025 as Public Law 119-21, ends most of the federal clean-energy tax credits created or expanded under the Inflation Reduction Act. The IRS published a dedicated FAQ on July 4, 2025 confirming the accelerated termination dates for sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D. The credits do not all end at once. They phase out on three main dates: September 30, 2025 for the vehicle credits, December 31, 2025 for the home-energy credits, and June 30, 2026 for the commercial and construction-based credits.
- §25E Used Clean Vehicle Credit: vehicle acquired after September 30, 2025
- §30D New Clean Vehicle Credit ($7,500): vehicle acquired after September 30, 2025
- §45W Commercial Clean Vehicle Credit: vehicle acquired after September 30, 2025
- §25C Energy Efficient Home Improvement Credit: property placed in service after December 31, 2025
- §25D Residential Clean Energy Credit: expenditures made after December 31, 2025
- §30C Alternative Fuel Vehicle Refueling Property Credit: placed in service after June 30, 2026
- §45L New Energy Efficient Home Credit: home acquired after June 30, 2026
- §179D Energy Efficient Commercial Buildings Deduction: construction beginning after June 30, 2026
Vehicle Credits Ended First: September 30, 2025
The three vehicle credits were the first to go. The $7,500 New Clean Vehicle Credit (§30D), the Used Clean Vehicle Credit (§25E), and the Commercial Clean Vehicle Credit (§45W) all end for vehicles acquired after September 30, 2025. The key word is "acquired," not "placed in service." Per the IRS FAQ, a taxpayer who had a written binding contract and made a payment on or before September 30, 2025 can still claim the credit even if the dealer delivered the vehicle later. The IRS also closed the Energy Credits Online portal to new dealer registrations on September 30, 2025.
Home Energy Credits Ended December 31, 2025
The two residential credits ended at the close of 2025. The Energy Efficient Home Improvement Credit (§25C), which covered items like heat pumps, exterior doors, and insulation, ends for property placed in service after December 31, 2025. The Residential Clean Energy Credit (§25D), which covered rooftop solar and battery storage, ends for expenditures made after December 31, 2025. The two credits use different timing rules: §25C keys off when the property is placed in service, while §25D keys off when the expenditure is made, meaning the installation is complete.
Commercial and Construction Credits Run Into Mid-2026
Three credits survive into the middle of 2026. The Alternative Fuel Vehicle Refueling Property Credit (§30C), which covers EV charging equipment, ends for property placed in service after June 30, 2026. The New Energy Efficient Home Credit (§45L), claimed by homebuilders, ends for homes acquired after June 30, 2026. The Energy Efficient Commercial Buildings Deduction (§179D) ends for construction that begins after June 30, 2026. Projects already under construction before that date remain eligible under the deduction.
Wind and Solar: The July 4, 2026 Construction Deadline
The larger Clean Electricity Production and Investment Credits (§45Y and §48E), which utility-scale wind and solar projects rely on, follow a two-path rule under OBBBA. A project that begins construction by July 4, 2026, twelve months after enactment, keeps the credit under the normal schedule. A project that does not begin construction by that date must be placed in service by December 31, 2027 to qualify. IRS Notice 2025-42 tightened the begin-construction standard for wind and solar, requiring the Physical Work Test and removing the 5% cost safe harbor for projects starting on or after September 2, 2025. These dates come from the OBBBA statute and IRS Notice 2025-42 rather than the section 25C-179D FAQ.
What This Means for CPA Candidates
Energy credits have never carried heavy weight on the exam, but the dates matter for REG and TCP candidates because any tax-planning question referencing these credits now has a firm expiration built into it. The broader lesson is timing. A client who bought an electric vehicle in August 2025 qualifies; one who bought in November 2025 does not. For the full picture of what OBBBA changed for the exam, see our OBBBA tax changes overview and the breakdown of what is testable on REG and TCP. For the routine 2026 figures that also apply from July 1, see our 2026 inflation-adjusted figures guide.
Sources
- 1.IRS — FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)(accessed Jul 15, 2026)
- 2.IRS — Treasury and IRS Issue FAQs on the Accelerated Termination of Several Energy Provisions Under OBBB(accessed Jul 15, 2026)
- 3.IRS — Notice 2025-42: Beginning of Construction for Sections 45Y and 48E(accessed Jul 15, 2026)
- 4.Grant Thornton — Energy Incentives Under the OBBBA: What You Need to Know(accessed Jul 15, 2026)
Brennan Kolar
Founder, Atlas CPA Index
Brennan Kolar is the founder of Atlas CPA Index, an independent CPA review comparison platform covering all 55 U.S. jurisdictions. With over 10 years of experience with CPA review, he built Atlas to help candidates find the right review course based on how they actually learn, not which provider has the biggest ad budget.
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