U.S. clean energy investments: 2025 Quarter 3 analysis

The report details a shift in U.S. federal priorities that has narrowed incentives for clean energy, primarily through the One Big Beautiful Bill Act (OBBBA) and executive agency actions. It highlights significant tax credit repeals or restrictions, DOE funding cancellations, and EPA reporting rollbacks that have created deep uncertainty across the electric power, manufacturing, and energy and industry sectors. While some investments accelerated to meet new deadlines, others—particularly in hydrogen, sustainable aviation fuel, and carbon management—have declined or relocated abroad.

• The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, significantly altered the clean energy tax landscape by repealing or narrowing several credits. Specifically, the 45Y and 48E credits for wind and solar facilities were terminated for those placed in service after December 31, 2027, and the 45V Clean Hydrogen Credit's availability was shortened to January 1, 2028, from the original 2033 date.
• New Prohibited Foreign Entities (PFE) and Foreign Entity of Concern (FEOC) restrictions introduced by the OBBBA now apply to six energy tax credits: 45U, 45Y, 48E, 45X, 45Q, and 45Z. This has increased compliance burdens and created industry uncertainty, with only 38% of surveyed firms reporting they are "fully prepared" for 2026 compliance.

APA

Hunt, K. (2025). U.S. clean energy investments: 2025 Quarter 3 analysis. Clean Air Task Force. https://www.catf.us/2025/12/us-clean-energy-investments-2025-quarter-3-analysis/

Chicago

Hunt, Kara. U.S. clean energy investments: 2025 Quarter 3 analysis. Clean Air Task Force, 2025. https://www.catf.us/2025/12/us-clean-energy-investments-2025-quarter-3-analysis/.

Wikipedia

{{cite report |last1=Hunt |first1=Kara |title=U.S. clean energy investments: 2025 Quarter 3 analysis |publisher=Clean Air Task Force |date=22 December 2025 |url=https://www.catf.us/2025/12/us-clean-energy-investments-2025-quarter-3-analysis/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hunt2025clean, author = {Hunt, Kara}, title = {{U.S. clean energy investments: 2025 Quarter 3 analysis}}, institution = {Clean Air Task Force}, year = {2025}, month = dec, url = {https://www.catf.us/2025/12/us-clean-energy-investments-2025-quarter-3-analysis/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }