On Aug. 21, the IRS released a fact sheet offering answers to frequently asked questions (FAQs) referring to Section 45Z of the Internal Revenue Code. The section, which was added by the Inflation Reduction Act, offers a Clean Fuel Production Credit for taxpayers who produce and sell qualifying clean transportation fuels from 2025 through 2027.
The FAQs answers which energy credits and deductions are expiring under the One Big Beautiful Bill Act, and what their new termination dates are in the following chart:
| Code Section | Section Title | Termination Date |
|---|
| 25C | Energy efficient home improvement credit | The credit will not be allowed for any property placed in service after December 31, 2025. |
| 25D | Residential clean energy credit | The credit will not be allowed for any expenditures made after December 31, 2025. |
| 25E | Previously-owned clean vehicles credit | The credit will not be allowed with respect to any vehicle acquired after September 30, 2025. |
| 30C | Alternative fuel vehicle refueling property credit | The credit will not be allowed for any property placed in service after June 30, 2026. |
| 30D | New clean vehicle credit | The credit will not be allowed for any vehicle acquired after September 30, 2025. |
| 45L | New energy efficient home credit | The credit will not be allowed for any qualified new energy efficient home acquired after June 30, 2026. |
| 45W | Qualified commercial clean vehicle credit | The credit will not be allowed for any vehicle acquired after September 30, 2025. |
| 179D | Energy efficient commercial buildings deduction | The deduction will not be allowed with respect to any property the construction of which begins after June 30, 2026. |
The FAQs also answered questions about acquiring a vehicle or purposes of the expiring clean vehicle credits under sections 25E, 30D, and 45W, what “acquired” means and what impact does “acquisition” of a vehicle have on a taxpayer’s ability to claim a credit under sections 25E, 30D, and 45W. According to the IRS, acquiring a vehicle prior to the termination date is an initial step, but acquisition alone does not immediately entitle a taxpayer to a credit.
The IRS also clarifies whether an election to transfer a clean vehicle credit be made at the time of acquisition and what will happen to the Energy Credits Online portal with the new termination periods for the clean vehicle credits.
The IRS also said that for purposes of the energy efficient home improvement credit under section 25C, qualified manufacturers are not required to make periodic written reports to the IRS regarding specified property. The tax agency also stated that for purposes of the residential clean energy credit under section 25D, a credit cannot be claimed for property installed after Dec. 31, 2025, or constructed after that date, if a taxpayer pays for the property on or before Dec. 31, 2025.