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How the proposed House Republican tax plan impacts the IRA and energy-related tax credits and incentives

May 13, 2025 · Authored by Robert Moczulewski, Jiyoon Choi

On May 22, 2025, the House passed an amendment to H.R. 1 (the “One, Big, Beautiful Bill”). For a list of key changes to the IRA credits in the May 22 amendment, review the latest article.

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On May 12, 2025, the House Republicans released a tax proposal, which is an amendment of the partial tax plan released on May 9, 2025. The comprehensive 389-page document outlines numerous initiatives, including increased state and local tax deduction, adjustments to standard deductions, increased child tax credits and estate tax exemptions, tax exemptions for tips and overtime wages, revised social security benefits, and deductions for interest on certain auto loans. More importantly, the Republican tax plan proposed various changes to renewable energy-related credits and incentives.

“The One, Big, Beautiful Bill” proposes:

Removal of tax credit transferability under Internal Revenue Code (IRC) section 6418 on most credits from the taxable years beginning after the date of enactment of this Act
Phase-out of certain credits and earlier sunsetting of credits

Removal of EV and EV charger-related credits

Removal of section 45V clean hydrogen production credit for clean hydrogen produced after Dec. 31, 2025

Credit	Overview
Section 25C	Energy efficient home improvement credit for improvements installed after Dec. 31, 2025
Section 25D	Residential clean energy credit (residential solar, geothermal heat pump, battery storage, etc.) expensed after Dec. 31, 2025
Section 45L	New energy efficient home credit after Dec. 31, 2025

Credit	Overview
Section 48	Energy credit for geothermal heat pumps Base credit reduction for projects beginning construction (BoC): In 2030 to 5.2% from 6.0% In 2031 to 4.4%
Sections 48Y and 48E	Clean electricity production credit and clean electricity investment credit Phase-out of credits on facilities that are placed in service (PIS): 2029 to 80% 2030 to 60% 2031 to 40% After Dec. 31, 2031, to 0%
Section 45U	Zero-emission nuclear power production credit Nuclear power produced in: 2029 to 80% 2030 to 60% 2031 to 40% After Dec. 31, 2031, to 0%
Section 45X	Advanced manufacturing production credit for components produced and sold in 2032 to 0% from 25%

Credit	Overview
Section 25E	Previously-owned clean vehicles credit to be removed for vehicles PIS after Dec. 31, 2025
Section 30D	Clean vehicle credit to be removed for vehicles PIS after Dec. 31, 2025
Section 45W	Qualified commercial clean vehicles credit to be removed for vehicles PIS after Dec. 31, 2025
Section 30C	Alternative fuel vehicle refueling property credit to be removed for refueling properties PIS after Dec. 31, 2025

How the proposed House Republican tax plan impacts the IRA and energy-related tax credits and incentives

“The One, Big, Beautiful Bill” proposes:

Robert Moczulewski

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