Company Update: Blue Energy Group and Walker Reid Strategies will be merging. Read the official announcement.
UPDATES
This week, the House passed its version of the “One Big Beautiful Bill,” and it includes major cuts to clean energy tax incentives. Most notably, the bill proposes to eliminate Section 48E, a key credit for clean electricity and storage projects.
This is not the final word. The bill now moves to the Senate, where it will likely face changes. Reconciliation between the House and Senate versions will be required before anything becomes law.
The current House language would end Section 48E for any project that begins construction more than 60 days after the bill is enacted or is placed in service after December 31, 2028.
This is a significant change from what House leadership initially signaled. While Section 48E is targeted, Section 48 and Section 179D are not touched under the current bill.
IMPACT
- Section 48E
At risk under the House version. If this language holds, eligible projects would need to begin construction within 60 days of enactment to qualify.
- Section 48
Remains in place. Geothermal and other technologies that qualify under the legacy ITC would not be impacted by the current draft.
- Section 179D
Unchanged. Projects involving energy-efficient commercial buildings can continue to rely on this deduction.
GUIDANCE
(Provided by David Diaz, Managing Partner at Walker Reid, and Josh Howes, CEO of Blue Energy Group)
- The bill is not final
The Senate has not yet taken up this version, and we expect debate, amendments, and changes before any final agreement is reached.
- Reconciliation will be needed
If the Senate makes adjustments, both chambers will need to agree on a final version. This process gives time and opportunity for key provisions to be challenged or preserved.
- Prepare and advocate
If you are working on projects that rely on 48E, review your construction timelines and prepare for potential deadlines. At the same time, make your voice heard. Contact your Senators and explain how these credits impact your work.
Here is the Senate contact list:
Senators’ Contact Info PDF
We will continue monitoring the situation closely and keep you updated as it develops. If you need help understanding how this may impact your projects, contact us to discuss.