The Future of Clean Energy? Delayed But Not Dead

Not a great morning for green energy or the long-term outlook for U.S. energy infrastructure.

The House just passed the One Big, Beautiful Tax Bill—with last-minute concessions that rewrote the rules for clean energy investment. Here’s what changed:

What Was Cut (Hard):

• 45Y and 48E tech-neutral credits: Repealed for projects starting more than 60 days after the bill is enacted or placed in service after 2028. No phaseout, no grace period, no 4-year safe harbor.
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• Material sourcing rules now kick in starting in 2026 tightening restrictions on components from China, with little time to pivot.
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• Residential solar (25D): Projects leased to homeowners won’t qualify for tech-neutral credits shocking move for an industry built on leasing.
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• Transferability is stripped for these credits post-2028, neutering their utility going forward.

Here’s the official bill text: H.R. 1 – One Big Beautiful Bill Act (Congress.gov)​

The Good News (Yes, There’s Some):

• Some legacy clean energy credits under Section 45Z remain intact, giving certain developers time to act especially if they’ve already begun construction. In a meaningful win for clean fuels, the bill extends the Section 45Z Clean Fuel Production Credit by four years, through December 31, 2032. This credit supports the domestic production of lower-emission fuels and is especially relevant for biofuels, SAF (sustainable aviation fuel), and advanced clean fuel startups. Translation: Clean fuel developers just got a longer runway—critical in a sector that needs capital and long-term certainty.
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• The Senate hasn’t voted yet. These provisions are not final. Early signals suggest a more moderate stance could emerge from the upper chamber.
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• There’s still bipartisan appetite for clean energy investment especially where it supports domestic manufacturing, jobs, and critical mineral independence.

Bottom Line:

The House version is a gut punch to clean energy momentum but not the end of the road.

Expect a heated Senate debate. Expect lobbying. And expect changes.

We’ll keep tracking it all for you.