The Big Beautiful Bill (OBBBA) Tax Credits Deadline Changes

The One Big Beautiful Bill Act (OBBBA) brings an early end to various tax credits available to individual taxpayers, although it offers short transition windows for final eligibility.

Below, we detail the different tax credit deadlines that have been updated by the One Big Beautiful Bill Act.

Residential Clean Energy Tax Credits

For example, homeowners considering making energy-efficient upgrades may need to act before year’s end to take advantage of these two clean energy tax credits:

The Energy Efficient Home Improvement Tax Credit

Under Section 25C, eligible taxpayers can receive a 30% tax credit for certain expenses within stated limits.

These include energy-efficient windows, doors, skylights, insulation materials, heat pumps, and home energy audits. The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes.

There are no income limits on this credit; instead, the limit amount depends on the expense. 

The maximum credit you can claim each year is $1,200 for energy-efficient property costs and certain energy-efficient home improvements, including: 

• $250 for an exterior door ($500 total)
• $600 for exterior windows and skylights, central air conditioners, electric panels and certain related equipment, natural gas, propane or oil water heaters, natural gas, propane or oil furnaces or hot water boilers.
• $150 for home energy audits
• $2,000 for qualified heat pumps, water heaters, biomass stoves or biomass boilers. (This supersedes the usual $1,200 annual limit.)

The previous expiration date for the Sec. 25C credit was the end of 2032. The new expiration date is December 31, 2025. 

Business Clean Energy Tax Incentives

Several credits targeting business investments in clean energy infrastructure are also being phased out or severely limited.

 For example, the OBBBA severely limits the tax breaks for new wind and solar projects. Here are two other tax breaks that are coming to an end under the law.

Energy Efficient Commercial Buildings Deduction

Building owners may claim a tax deduction when they place in service energy-efficient commercial building property or energy-efficient commercial building retrofit property. 

While this deduction, under Section 179D, dates back to 2006, the IRA significantly expanded its scope and potential value. Under the OBBBA, there will be no deduction for buildings or systems with construction starting after June 30, 2026.

Advanced Manufacturing Production Credit

Several modifications have been made to this tax credit, under Section 45X. It’s equal to a specific credit rate based on the eligible component(s) produced by a manufacturer in their trade or business and sold within the taxable year for which the credit is claimed. Eligible components include: 

• Solar energy components
• Wind energy components (including offshore wind vessels)
• Inverters
• Electrode active materials
• Qualifying battery components
• Applicable critical minerals.

The OBBBA adds “metallurgical coal” (for steel production) to the critical mineral list. For wind components, there will be no credit after 2027. Most critical material credits will phase out between 2031 and 2033. The metallurgical coal credit ends after 2029. 

Now’s the Time for Home Energy Updates

If you were on the fence about a major energy upgrade, 2025 is going to be your best chance at making an energy upgrade to your home with the help of a substantial tax credit. 

Contact us today to get started. Let us come out, evaluate your home for energy efficiency upgrades, and see how we can earn you the biggest tax credit possible.

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