Full Title: One Big Beautiful Bill: New Law Disrupts Clean Energy Investment
Author(s): Latham and Watkins LLP
Publisher(s): Latham and Watkins LLP
Publication Date: July 8, 2025
Full Text: Download Resource
Description (excerpt):
July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the OBBB), which significantly rolls back many of the core tax incentives that clean energy projects have relied on since the passage of the Inflation Reduction Act in 2022.
Under the new law, tax credits for wind and solar projects phase out much sooner. To qualify, these projects must either be completed by the end of 2027 or begin construction within the next 12 months. This compressed timeline will likely force developers to accelerate their project schedules or risk losing critical tax credits. In contrast, the OBBB largely preserves tax credits into the next decade for newer clean energy technologies, like battery storage and carbon capture.