Here’s what HIVE AI had to say about “What green energy tax credits are new or expanded for 2025?”:
Technology‑neutral electricity credits start in 2025 (replace §§45/48)
- Clean Electricity Production Credit (§45Y). New, technology‑neutral production credit for electricity from facilities placed in service after 12/31/2024 with a greenhouse gas emissions rate not greater than zero; applies for 10 years from in‑service date. This replaces the legacy §45 PTC for new builds beginning in 2025. 1
- Clean Electricity Investment Credit (§48E). New, technology‑neutral ITC for qualified facilities and energy storage placed in service after 12/31/2024; base rate 6%, increased to 30% if prevailing wage and apprenticeship (PWA) are met. 2
- First Annual Table for §45Y/§48E GHG emissions rates effective Jan. 15, 2025, confirms wind, solar, hydro, geothermal, nuclear, and certain waste energy recovery are “not greater than zero,” qualifying these technologies under the new credits. 3
- IRS confirms the transition from the pre‑2025 §45/§48 credits to §45Y/§48E for facilities beginning construction and placed in service after 2024. 4
Clean Fuel Production Credit (§45Z) begins in 2025 and is expanded
- New as of Jan. 1, 2025. Income tax credit for domestic production of clean transportation fuels (both SAF and non‑SAF), computed as an applicable amount per gallon (or gallon equivalent) times the fuel’s statutory emissions factor; producers must register (Form 637, activity letters “CA”/“CN”) before claiming. 5
- Credit amounts for 2025: generally $0.20/gal ($0.35/gal for aviation fuel), or $1.00/gal ($1.75/gal for aviation fuel) if PWA requirements are met, each multiplied by the fuel’s CO2 emissions factor. 6
- One Big Beautiful Bill (enacted 2025) extended §45Z two years, through fuel produced by 12/31/2029, added rules allowing distinct (and potentially sub‑zero) emissions rates for animal‑manure‑derived fuels, coordinated §45Z with other fuel credits to prevent double benefits, authorized additional related‑party sale rules, and updated the definition/coordination for sustainable aviation fuel, among other changes. 7
Low‑Income Communities Bonus Credit continues into the §48E era for 2025
- The Low‑Income Communities Bonus Credit program has 2025 procedures in place for the clean electricity ITC (§48E(h)), continuing the bonus allocation regime (10 or 20 percentage‑point increases) for small projects serving low‑income areas/households. 8
Residential credits: updates and planning considerations for 2025
- Residential Clean Energy Credit (§25D) remains at 30% for eligible expenditures (solar PV, solar water heating, fuel cells, small wind, geothermal heat pumps, and battery storage). IRS FAQs updated Jan. 17, 2025 clarify qualifying expenditures and credit computation. 9
- One Big Beautiful Bill terminates §25D for expenditures made after Dec. 31, 2025 (accelerating the prior schedule). If you’re planning projects, 2025 is a critical year to place orders/pay for qualifying expenditures. 10
Sustainable aviation fuel and related fuel credit coordination in 2025
- The separate Sustainable Aviation Fuel credit under §40B (per‑gallon) remains available; for 2025 the new §45Z clean fuel regime applies to SAF producers with specific coordination rules. 6
- One Big Beautiful Bill coordinates §45Z with the SAF mixture excise credit and provides that the SAF mixture credit under §6426(k) terminates for sales/use after Sept. 30, 2025, streamlining how SAF is incentivized post‑2025. 7
Advanced manufacturing production credit adjustments
- Advanced Manufacturing Production Credit (§45X) saw 2025 legislative modifications to phase‑out/restrictions and certain rate details; these changes affect component producers in clean energy supply chains beginning after enactment. 11
Quick takeaways
- New for 2025: technology‑neutral clean electricity credits (§45Y and §48E) and the clean fuel production credit (§45Z). 1
- Expanded in 2025 by legislation: §45Z extended to 2029 with significant technical updates; Low‑Income Communities Bonus procedures published for §48E projects; §25D will sunset for expenditures after 2025, prompting near‑term planning. 7
If you tell me whether you’re an individual homeowner, a project developer, or a fuel/equipment manufacturer, I can map these 2025 changes to specific actions and filing steps for you.
Sources
1 – IRC § 45Y(b) 📄 Summarize
2 – Notice 2022-49 📄 Summarize
3 – Rev. Proc. 2025-14 📄 Summarize
4 – IRS – Publication 5817-G Clean Energy Tax Incentives Elective Pay-Eligible Tax Credits 📄 Summarize
5 – IRS Credits and Deductions – Clean Fuel Production Credit 📄 Summarize
6 – IRS – Publication 5886 Clean Energy Tax Incentives for Businesses 📄 Summarize
7 – One Big Beautiful Bill Act Sec. 70521. Extension and modification of clean fuel production credit 📄 Summarize
8 – IRS.gov – Inflation Reduction Act of 2022 📄 Summarize
9 – IRS Credits and Deductions – Frequently asked questions about energy efficient home improvements and residential clean energy property credits – Residential Clean Energy Property Credit – Qualifying expenditures and credit amount 📄 Summarize
10 – One Big Beautiful Bill Act Sec. 70506. Termination of residential clean energy credit 📄 Summarize
11 – One Big Beautiful Bill Act Sec. 70514. Phase-out and restrictions on advanced manufacturing production credit 📄 Summarize
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