Updated July 6, 2025
Legislation was signed into law that significantly rolls back several key tax credits established under the Inflation Reduction Act (IRA) and CHIPS and Science Act, raising concerns among many in the clean fuels industry.
The “One Big Beautiful Bill Act” eliminates several clean fuel tax credits:
- 30D – New Electric Vehicles: The credit for new EVs will be eliminated after September 30, 2025.
- 25E – Used Electric Vehicles: The credit for used EVs will be eliminated after September 30, 2025.
- 45W – Commercial Electric Vehicles: The credit for alternative fuel commercial vehicles is eliminated after September 30, 2025.
- 30C – Alternative Refueling Infrastructure: The tax credit for charging and alternative refueling infrastructure would is eliminated after June 30, 2026.
- 45V – Hydrogen Production: The tax credit for hydrogen production will be eliminated on January 1, 2028.
- 45X – Clean Energy Component Manufacturing: The credit supporting U.S. production of clean energy components, including batteries, will be phased down beginning in 2030.
Bright Spots: Not all provisions face elimination.
- 45Z – Clean Fuels Production Credit: The bill extends this tax credit to December 31, 2029.
- Advanced Manufacturing Investment Credit: The bill increases the credit rate from 25% to 35% for property placed in service after December 31, 2025.
What’s Next:
We are still assessing the impact that these changes might have for the industry in Michigan. It appears that the EV industry will be harmed the most. We look forward to blunting that impact with strong state-level policy, and continuing to support the momentum that alternative fuels has gained in recent years.
If you’re a Clean Fuels Michigan member and would like to discuss how these changes will impact your business and your goals in Michigan, please contact Jane.
