One Big Beautiful Bill Act—Impact on Energy Tax Credits
The One Big Beautiful Bill Act (the "OBBBA"), which was passed on July 4, 2025, included several changes to the energy tax credits introduced and expanded by the Inflation Reduction Act of 2022. The key changes to these credits are summarized in this White Paper.
A major change under the OBBBA was the introduction of the so-called foreign entity of concern restrictions (the "FEOC Restrictions"), which apply to a number of the IRA energy credits. The impacted credits and effective dates of the FEOC Restrictions are noted here. Future commentary will provide an in-depth analysis of the FEOC Restrictions.
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