Updated June 25, 2025
Congress is advancing legislation that would significantly roll back several key tax credits established under the Inflation Reduction Act (IRA) and CHIPS and Science Act, raising concerns across the clean fuels industry.
Proposed Eliminations in House and Senate:
- 30D – New Electric Vehicles: Up to $7,500 credit for new EVs will be mostly eliminated after 2025, except for a limited number of qualifying vehicles
- 25E – Used Electric Vehicles: Up to $4,000 credit for used EVs would be eliminated after 2025
- 45W – Commercial Electric Vehicles: The credit for alternative fuel commercial vehicles would be mostly eliminated after 2025, with a narrow exception for vehicles purchased before May 2025 and placed in service before 2033
- 30C – Alternative Refueling Infrastructure: The tax credit for charging and alternative refueling infrastructure would be eliminated after 2025
- 45V – Hydrogen Production: The tax credit for hydrogen production would be eliminated at the end of 2025
- 45X – Clean Energy Component Manufacturing: The credit supporting U.S. production of clean energy components, including batteries, would be phased out after 2031
Bright Spots:
Not all provisions face elimination.
- 45Z – Clean Fuels Production Credit: The House and Senate proposals would both extend this credit through 2031, and make different modifications to the credit regarding domestic content and indirect land use calculations. These differences will need to be ironed out and could have big impacts on the value and use of the credit.
- Advanced Manufacturing Investment Credit: The Senate proposal contains a provision to increase the credit rate from 25% to 30% for property placed in service after December 31, 2025.
What’s Next:
The House version of the bill has been passed. The Senate bill may move to a floor vote any day. Then, the bill will need to be passed by the House again to concur with Senate changes.
If you’re a Clean Fuels Michigan member and would like assistance reaching out to your congressional delegation to support clean fuels tax credits, please contact Jane.
We’ll monitor developments closely and share updates as more information becomes available.
