Three Clean-Energy Tax Credits Have Sunset on June 30, 2026

The 2025 reconciliation law reshaped the federal clean-energy incentive landscape, extending some credits while placing hard expiration dates on others. Three long-standing provisions used across commercial real estate, transportation infrastructure, and residential development reach their deadlines on June 30, 2026: the Section 179D energy-efficient commercial buildings deduction, the Section 30C alternative fuel vehicle refueling property credit, and the Section 45L new energy-efficient home credit.

For companies with projects underway, the details matter enormously — because each of the three credits sunsets on a different trigger. Whether a project still qualifies can depend on exactly when construction began, when property was placed in service, or when a home was acquired. Documenting that timing correctly is now the difference between capturing and losing the incentive.

Recent Program Activity: What Changed

Under Public Law 119-21, 139 Stat. 72 (July 4, 2025), Congress accelerated the termination of several energy-related tax incentives. The IRS summarized the changes in a set of frequently asked questions (Fact Sheet FS-2025-05, released August 21, 2025) addressing modifications to Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D. Three of those provisions share a common June 30, 2026 cutoff but apply it through different tests.

Section 179D — Energy-Efficient Commercial Buildings Deduction

Under the law, the Section 179D deduction is not allowed for any property the construction of which begins after June 30, 2026. Because the trigger is the beginning of construction, projects that have already started may retain eligibility even if completion extends beyond the deadline — which makes contemporaneous documentation of the construction-start date critical.

Section 30C — Alternative Fuel Vehicle Refueling Property Credit

The Section 30C credit is not allowed for any property placed in service after June 30, 2026. This provision supports EV charging stations and other alternative-fuel refueling infrastructure. Here, the test is placed-in-service, not construction start, so equipment must be operational and in service by the deadline to qualify.

Section 45L — New Energy-Efficient Home Credit

The Section 45L credit is not allowed for any qualified new energy-efficient home acquired after June 30, 2026. The relevant test is acquisition, which for homebuilders generally ties to the sale or lease of a qualifying home to a buyer or tenant. Builders should reconcile their closing calendars against the deadline.

Program Overview: How the Credits Work

• Section 179D provides a deduction for energy-efficient improvements to commercial building systems — lighting, HVAC, and the building envelope — that achieve specified energy-reduction targets, and it can be allocated to the designers of buildings owned by government and certain tax-exempt entities.
• Section 30C historically provided a credit for a percentage of the cost of qualified alternative-fuel refueling property, including EV charging equipment, subject to program limits and requirements.
• Section 45L provided a per-unit credit to eligible contractors for new energy-efficient homes meeting recognized energy-efficiency standards.

The Compliance Reality

The most important compliance point is documentation of timing. The IRS has historically treated the beginning of construction as a facts-and-circumstances determination supported by contemporaneous records, and it has declined to issue private letter rulings on beginning-of-construction questions in comparable credit contexts. For Section 179D, that means preserving evidence of physical work or qualifying expenditures before the deadline. For Section 30C, it means documenting the in-service date. For Section 45L, it means aligning acquisition and certification records.

Because the IRS guidance summarizing these changes takes the form of non-binding FAQs interpreting the statute, companies should confirm their specific positions with qualified tax advisors and rely on the statutory text and any subsequent Treasury guidance for authority.

How SSG Can Help

Site Selection Group evaluates the full landscape of federal, state, and local incentives available for a given project — including how expiring credits like these interact with location decisions, project phasing, and other available programs. We help clients understand which incentives a project may qualify for and how timing affects eligibility.

If your company has a commercial development, refueling infrastructure, or residential project that could be affected by the June 30, 2026 sunset, contact SSG to evaluate your incentive position and options.

Program details verified against primary sources as of July 1, 2026. This article is provided for general information and does not constitute tax or legal advice.