Update: One Big Beautiful Bill Act (and what it means for energy)

Update as of July 1, 2025, 12:35 p.m.


Late this afternoon, the Senate passed the One Big Beautiful Bill Act (OBBBA) via a 51–49 vote, using reconciliation to bypass the 60-vote threshold. The Senate-adopted version includes several negotiated amendments—including key updates to energy tax credits, which we've championed throughout this process.

A final “wraparound” amendment was also approved, updating provisions related to Medicaid and energy, and securing support from moderate Republicans.

You can access the final Senate-passed version here.

Energy Provisions Included:

  • Restoration of a 30% investment tax credit for projects beginning construction in 2025

  • Codification of IRS safe harbor rules for construction timelines

  • Elimination of restrictive provisions that would have hindered credit eligibility

  • Delayed implementation of certain domestic content requirements

These provisions represent significant gains for advanced energy investment, grid reliability, and economic growth—especially in Arkansas.

Next Steps: House Review & Rules Committee

  • Today: The bill is being referred to the House Rules Committee, a key step toward floor consideration.

  • Timing: After Rules Committee approval, a full House vote is expected early next week, post–July 4 holiday.

  • Outlook: House leadership is pushing for swift adoption of the Senate version. However, hardline conservatives could delay consideration or propose changes, particularly related to energy incentives and healthcare.

AAEA will continue working to ensure the energy tax provisions remain fully intact during the House process.

Next
Next

AAEA Granted Intervenor Status in SWEPCO Rate Case