Renewable Loophole in the One Big Beautiful Bill
August 8, 2026 The One Big Beautiful Bill Act (OBBBA) of 2025 phased out hefty solar and wind tax credits created under former President Biden’s Inflation Reduction Act (IRA) passed in 2022. But instead of phasing out battery storage tax credits along with the wind and solar tax credits, the OBBBA phases them out much later — in 2036— which solar developers are now capitalizing on by adding battery storage components to new builds, allowing them to keep earning lucrative clean energy tax credits despite the phaseout. Warren Buffett pointed out more than a decade ago : “For example, on wind energy, we get a tax credit if we build a lot of wind farms. That’s the only reason to build them. They don’t make sense without the tax credit.” Under the OBBBA, solar and wind projects that have not started construction no longer qualify for the IRA tax credits. Because of lucrative tax credits, wind and solar projects have made up a majority of the energy sector’s growth since 2019. According to t...