Article
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.
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
| Credit | Overview |
| Section 48 | Energy credit for geothermal heat pumps
Base credit reduction for projects beginning construction (BoC):
|
| 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):
|
| Section 45U | Zero-emission nuclear power production credit
Nuclear power produced in:
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| Section 45X | Advanced manufacturing production credit for components produced and sold in 2032 to 0% from 25% |
