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Tax News
March 13, 2026
With President Trump's new One Big Beautiful Bill Act (OBBBA), we have a few losers too.
What is OBBBA?
Most people have heard about the new breaks for tips, overtime, car loan interest, and seniors. But the One Big Beautiful Bill Act also changed a lot of other tax rules, including rolling back several clean energy credits that many families had planned to use. The law was signed on July 4, 2025, and many of these changes started affecting 2025 and 2026 tax planning right away.
A lot of clean energy tax breaks are ending early
The current administration believes that the renewable market has been boosted too much, and wanted to scale back on all the credits. Almost all of the energy efficient credits have been sunsetted, and replaced with new incentive credits.
Electric car tax credits were cut off early
One major downside is the end of the federal tax credits for electric vehicles. Under OBBBA, the new clean vehicle credit and the previously owned clean vehicle credit are no longer allowed for vehicles acquired after September 30, 2025. As of the writing of this article, the credit is no longer available.
The home solar credit is ending sooner than many expected
The bill also accelerates the end of the Residential Clean Energy Credit, which is the credit many homeowners used for solar panels, battery storage, geothermal systems, solar water heaters, wind systems, and fuel cells. Under OBBBA, the credit is not allowed for expenditures made after December 31, 2025. Households that managed to capitalize on this credit saw a 30% credit for the cost of solar. That meant installing solar was 30% off during those years.
Energy-efficient home improvement credits are also being shut down
Another downside is the loss of the Energy Efficient Home Improvement Credit. This was the credit that helped reduce the cost of items like windows, exterior doors, insulation, central air systems, furnaces, boilers, heat pumps, biomass stoves, and home energy audits. Under the new law, the credit is not allowed for property placed in service after December 31, 2025. This credit was more under-utilized, but still a viable strategy for reducing the costs of some small remodels.
Some changes may also make tax reporting less visible
OBBBA also reverted the Form 1099-K reporting threshold to the older rule, meaning third-party settlement organizations generally only have to report payments when they exceed $20,000 and involve more than 200 transactions. While some people may see that as a relief, the downside is that it reduces automatic reporting visibility for smaller payment activity and can make it easier for taxpayers to overlook income they still must report. While this won't effect many taxpayers, this is still a major change as the previous barrier was planned to be $600.
If any of this is interesting, or confusing, reach out! We would love to talk more about all these changes.
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