Finding
The IRA's consumer credits are gone; its credits for factories, nuclear and fuels mostly remain
The Inflation Reduction Act of 2022 put $369 billion of energy incentives into Subtitle D, most of them uncapped tax credits. The One Big Beautiful Bill Act of July 2025 sorted them. Every credit aimed at households - EVs, chargers, rooftop solar, heat pumps - ended by mid-2026. Wind and solar generation credits face a hard cutoff. Credits for manufacturing, nuclear, carbon capture and clean fuels were kept, several with new restrictions on Chinese-linked companies.
For electrification, the result is a supply-side policy. The 45X manufacturing credit and the 48E credit for battery storage still pay; the demand-side credits that helped buyers choose EVs and heat pumps do not. Hydrogen kept its credit only for projects starting construction before 2028, which, together with cancelled hydrogen hubs, explains the US hydrogen slowdown covered on Green Hydrogen Electrolyzers.
Provisions
IRA energy provisions and their status
Section numbers refer to the IRA; status as of October 2026.
| IRA section | Provision | Who it served | Status |
|---|---|---|---|
| 13101-13102 | Renewable PTC and ITC (45, 48) | Wind, solar, storage generation | Replaced by 45Y/48E from 2025 |
| 13105 | Nuclear production credit (45U) | Existing nuclear plants | Kept |
| 13104 | Carbon capture credit (45Q) | CCS and direct air capture | Kept |
| 13204 | Clean hydrogen credit (45V) | Hydrogen production | Construction start moved to before 2028 |
| 13301 | Home improvement credit (25C) | Heat pumps, windows, audits | Ended Dec 31, 2025 |
| 13302 | Residential clean energy credit (25D) | Rooftop solar, home batteries | Ended Dec 31, 2025 |
| 13304 | New energy efficient home credit (45L) | Builders | Ended Jun 30, 2026 |
| 13401 | New clean vehicle credit (30D) | EV buyers | Ended Sep 30, 2025 |
| 13402 | Used clean vehicle credit (25E) | Used EV buyers | Ended Sep 30, 2025 |
| 13403 | Commercial clean vehicle credit (45W) | Fleets, mobile machinery | Ended Sep 30, 2025 |
| 13404 | Refueling property credit (30C) | Chargers | Ended Jun 30, 2026 |
| 13501 | Advanced energy project credit (48C) | Clean energy factories | Kept |
| 13502 | Advanced manufacturing credit (45X) | Component makers | Kept; wind ends 2027; FEOC rules |
| 13701 | Clean electricity production credit (45Y) | Generation | Wind and solar: start by Jul 4, 2026 or in service by 2027 |
| 13702 | Clean electricity investment credit (48E) | Generation and storage | Wind and solar cutoff as 45Y; storage kept with FEOC rules |
| 13704 | Clean fuel production credit (45Z) | Low-carbon fuels | Extended to 2029 |
| 13801 | Elective pay and transferability | Monetizing credits | Kept; transfers to prohibited foreign entities barred |
Sources
Sources and scope
- Scope
- Inflation Reduction Act of 2022 energy provisions and their status after OBBBA
- Sources
- Inflation Reduction Act (Public Law 117-169); One Big Beautiful Bill Act (Public Law 119-21, July 4, 2025); Troutman, PwC, Kirkland analyses
- Updated
- October 2026