North America

The One Big Beautiful Bill Act Overhauls US Clean Energy Incentives Industrial subsidies mostly retained, albeit with sourcing rules. On 4 July 2025, President Trump signed the One Big Beautiful Bill Act OBBBA) into law, a sweeping package that significantly rolls back many of the Biden-era clean energy incentives under the Inflation Reduction Act IRA.

The $7,500 EV tax credit is repealed, but its sourcing requirements live on through the new Prohibited Foreign Entity PFE) and Material Assistance Cost Ratio MACR) rules, now applied to the production 45X) and investment 48E) tax credits.

Using Chinese critical minerals carries looser restrictions for battery producers, but the restrictions tighten over time.

Most Chinese-origin companies are excluded from accessing the production tax credit for their US-based battery projects due to their classification as PFEs - akin to the Biden-era ‘Foreign Entity of Concernʼ designation.

Existing LFP battery technology partnerships are shielded, such as Ford-CATL, but new partnerships face disqualification.

Stricter investment tax credit rules make it harder for energy storage projects to qualify from 2026 onwards if they start construction beyond 2025.

Source: Content & analysis provided by CRU Group Distinguished Partner). For more information, visit crugroup.com.

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