Dhruv Panchal

CPA | Tax Manager

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law, bringing sweeping changes to federal tax provisions. While much attention has been focused on electric vehicle (EV) tax credits, the legislation also includes a wide range of energy-related tax incentives that could impact both individuals and businesses.

If you want to take advantage of these benefits, timing will be critical, many of these provisions have short windows before they expire. Here’s what’s changing and what you should be doing now to prepare.

Energy Tax Credits for Individuals

The One Big Beautiful Bill Act includes several incentives designed to encourage the adoption of clean energy solutions in homes and vehicles. However, these credits are set to expire soon:

• Clean Vehicle Credits – Applies to new and used EVs
  Expires September 30, 2025
• Commercial Clean Vehicle Credits – For leased vehicles including for those assembled outside the U.S.
  Expires September 30, 2025
• Energy-Efficient Home Improvements – Covers upgrades like windows, doors, insulation and HVAC systems
  Expires December 31, 2025
• Residential Clean Energy Credits – For renewable energy installations such as solar panels, geothermal systems and wind turbines
  Expires December 31, 2025

Energy Tax Provisions for Businesses

Businesses will also see notable changes to clean energy incentives, some ending soon, others phasing out gradually:

• Alternative Fuel Vehicle Refueling Property Credit – For installing EV charging stations or alternative fuel pumps
  Expires June 30, 2026
• Clean Hydrogen Production Credit – Incentivizes hydrogen energy production
  Expires December 31, 2027
• Clean Electricity Production & Investment Credits
  Phases out between 2033–2036 (25% reduction each year)
• Wind and Solar Credits – Part of Clean Electricity Production and Investment Credits
  Expires December 31, 2027
• Advanced Manufacturing Production Credit
  Phases out between 2031–2034
  Wind energy components expire December 31, 2027
• Alternative Fuel Tax Credit – Covers fuels like propane used in business operations
  Expired December 31, 2024
  May be retroactively extended by Congress

What Should You Do Now?

While many details are still pending clarification through regulations, here’s how you can stay ahead:

• Start tax planning early – don’t wait until the end of the year with these deadlines in flux.
• Talk to your tax advisor about how the bill affects your specific situation.
• Review which provisions apply to you and their expiration timelines.
• Be proactive – there’s no one-size-fits-all strategy.

The Bottom Line

At Cray Kaiser, we’re here to help you navigate these changes and plan not just for this year, but for the years ahead. Contact us to discuss how the One Big Beautiful Bill may impact your tax situation.