The House Ways and Means Committee is advancing legislation that would significantly roll back several key tax credits established under the Inflation Reduction Act (IRA), raising concerns across the clean fuels industry.
Proposed Eliminations:
- 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
One Bright Spot:
Not all provisions face elimination. The bill includes a key extension:
- 45Z – Clean Fuels Production Credit: This credit would be extended through 2031 and include favorable changes to support biogas, sustainable aviation fuel (SAF), and other low-carbon biofuels
What’s Next:
The legislation is moving through Congress and could be revised further. 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.
