The U.S. Senate narrowly passed the sweeping One Big Beautiful Bill today with a 51–50 vote. Vice President J.D. Vance cast the tiebreaking vote, securing the bill’s return to the House for a final vote.
The newest version of the bill includes a rollback of certain clean energy tax credits established under the Inflation Reduction Act. Under the Senate-passed version, the bill accelerates the sunset of some existing incentives, including the consumer tax credit for electric vehicles and used EV credit, which will expire on September 30, 2025.
The Senate’s version of the bill also shortens the lifespan of the 45V hydrogen production tax credit. Originally enacted as part of the Inflation Reduction Act, the 45V credit was designed to provide up to $3 per kilogram of low-emission hydrogen during a 10-year period. Under the Senate-passed legislation, the credit would be phased out entirely for projects not under construction by the end of 2027. Hydrogen facilities that begin construction before the bill’s enactment and are operational by December 31, 2027, would remain eligible for the credit. The change could also affect the future of the Department of Energy’s Regional Clean Hydrogen Hubs initiative, which is reliant on the 45V credit to attract private capital and ensure commercial feasibility.
The Senate version of the bill also includes modifications to biofuel and renewable diesel tax credits. It extends the clean fuel production credit — Section 45Z — through 2031, but applies a 20% reduced credit value for biofuels manufactured from feedstocks sourced outside the U.S. The legislation also revives and increases the small agri-biodiesel producer credit, boosting it from $0.10 to $0.20 per gallon and extending eligibility through December 31, 2026, and reinstates credit transferability.
For sustainable aviation fuel, the Senate version rolls back the enhanced credit rate for fuel sold after 2025. However, the basic SAF credit remains available through fuel sold in 2029 as part of Section 45Z adjustments.
The House is expected to take up the bill later this week. If successful, President Trump is expected to sign the bill into law on or before July 4.
