Details of Public Law 119-21, section 70513 , One Big Beautiful Bill Act

Qualified Fuel Cell

Solar Energy to generate electricity to heat or cool a structure, or to produce solar process heat, except for purposes of heating a swimming pool

Equipment used to produce, distribute, or use energy derived from a geothermal deposit used to generate power up to the electrical transmission stage

Fiber-Optic Solar

Qualified Small Wind Energy

Waste Energy Recovery

Energy storage technology

Qualified biogas property

Microgrid controllers

Combined Heat and Power System

Equipment that uses ground or ground water as a thermal energy source

The provision provides a 30 percent clean electricity investment credit for qualified fuel cell property that is not subject to the greenhouse gas emission rate and a credit recapture.

IRC 48E

The provision terminates the clean electricity investment credit for qualified wind and solar facilities placed in service after December 31, 2027. This provision disallows the clean electricity investment credit for facilities or energy storage technology the construction, reconstruction, or erection of which begins after December 31, 2025, that receives material assistance from prohibited foreign entities. The credit is also disallowed for a specified foreign entity or foreign-influenced entity.

The provision also prohibits the clean electricity investment credit for the investment with respect to qualified solar water heating property or qualified small wind energy property, as defined in IRC section 25D(d)(1) and (4), respectively, that are leased to a third party during the taxable year.

This provision modifies the domestic content bonus credit amount for the clean electricity investment credit for qualified wind and solar facilities.

IRC 50

This provision enacts a recapture provision for the clean electricity investment credit related to payments from prohibited foreign entities.

California does not conform to the clean electricity investment credit under IRC section 48, section 48E, or section 50. As a result, California does not conform to the changes made by this provision.