Due to the passage of the One Big Beautiful Bill Act earlier this year, the clean energy tax credits and funding programs provided by the Inflation Reduction Act are set to expire in the coming months and years. Additionally, all projects will have to comply with new Prohibited Foreign Entity (PFE) restrictions beginning in 2026. This means a project cannot receive a tax credit if it has ties to China, Russia, Iran, North Korea, or other PFEs. These changes impact funding opportunities for commercial businesses and public agencies served by the SNEW program. It is important to remember that eligible tax exempt and government entities can also claim tax credits through elective or direct pay. 

But which tax credits are expiring first, and when? What kinds of projects should be prioritized to take advantage of these financial incentives while you still can? Below is a list of commercial tax credits, in order of expiration, that can still be accessed:

• Alternative Fuel Vehicle Refueling Property Credit (Section 30C): This credit is for the installation of equipment to recharge electric vehicles or store or dispense clean burning fuel at your property. To qualify, the refueling or recharging property must be installed in a low-income community census tract or non-urban census tract. This includes many SNEW territory census tracts. Property placed in service before June 30, 2026 is eligible. 
• Clean Electricity Investment Tax Credit (ITC) (Section 48E) & Clean Electricity Production Tax Credit (Section 45Y): These two tax credits are technology-neutral, so they cover a wide range of clean energy projects (e.g. solar and battery storage), and incentives are based on emissions savings. Solar and wind projects that commence construction by July 4, 2026 are eligible. Solar and wind projects that commence construction before January 1, 2026 do not have to prove that the component parts in their facility are not significantly derived from certain PFEs. After July 4, 2026, only solar and wind projects placed in service by December 31, 2027 are eligible. Zero emission energy technologies other than solar and wind, such as energy storage, that commence construction before December 31, 2033 are eligible for full credit, with a two-year credit phasedown afterwards.
• Advanced Manufacturing Production Credit (Section 45X): This credit is geared towards the manufacturing of clean energy components. Wind components produced and sold by December 31, 2027 are eligible, other technologies (e.g. solar) can take advantage of this credit for longer.
• Credit for Production of Clean Hydrogen (Section 45V): This credit is provided for the production of clean hydrogen at a qualified facility. Facilities that commence construction by December 31, 2027 are eligible.
• Clean Fuel Production Credit (Section 45Z): This income tax credit is for the domestic production of clean transportation fuel, which is divided into two categories, sustainable aviation fuel (SAF) and non-SAF transportation fuel. Transportation fuel sold by December 31, 2029 is eligible. Enhanced rates for SAF are terminated for fuel sold after December 31, 2025.
• Legacy Investment Tax Credit (See Above): There is no change to the Investment Tax Credit for geothermal heat pumps. Full credit is provided if construction begins before January 1, 2035, with a two year phase down.