The Big Beautiful Mess

In this week’s episode of Tax Credit Talk, hosts Hallie James and Parker An unpack the sweeping—and controversial—changes introduced by the newly passed “Big Beautiful Bill.” With some credits locked in and others on the chopping block, this legislation sends a mixed message across sectors, especially for those in clean energy, AI, housing, and infrastructure.

Whether you’re placing credits or planning projects, this episode offers a crucial breakdown of what’s being extended, what’s being cut, and how to act before key deadlines hit.

What We Covered:

Clean energy tax credits face a sharp rollback
The bill begins phasing out the Investment Tax Credit (ITC) and Production Tax Credit (PTC) for wind and solar projects starting after 2025. This could dramatically alter development timelines and financing across the renewable energy sector.

EV tax credits drive off a cliff
The $7,500 EV credit and associated incentives will sunset by 2027, dealing a blow to clean transportation goals and potentially raising the cost of adoption for consumers and fleets.

New personal tax deductions and Child Tax Credit locked in
While clean energy takes a hit, some individual benefits are expanded. The Child Tax Credit is made permanent at $2,200, and new deductions are introduced for tips, auto loans, and senior taxpayers.

SALT deduction cap raised—temporarily
The state and local tax (SALT) deduction cap is temporarily raised to $40,000, offering relief for some high-tax state residents, though the increase sunsets in five years.

Impact on AI and data infrastructure
The bill’s pullback on clean energy incentives could significantly affect the economics of large data centers that power AI—companies like Google and Microsoft may face rising operating costs as solar and wind incentives shrink.

Key Takeaways:

• Clean energy developers and investors face new urgency to begin construction before 2026.
• Permanent tax relief for families contrasts with aggressive rollbacks in climate policy.
• Infrastructure-heavy industries like tech may see higher long-term energy costs.
• The bill represents a major pivot in federal tax priorities—with winners and clear losers.

Final Thoughts:

From server farms to solar farms, the “Big Beautiful Bill” is reshaping the rules of the game. Whether you’re navigating incentives for clean energy, housing, or innovation, understanding these federal shifts is critical for protecting your project pipeline.

🎧 Listen to the full episode:
https://podcasts.apple.com/us/podcast/the-big-beautiful-mess/id1816285847?i=1000715494706

📩 To speak with our team, reach out at team@fallbrookfinance.com with the subject line “Tax Credit Talks.”

Fallbrook Financial Services is one of the largest state tax credit brokerages in the country. With over $6 billion in credits placed across renewable energy, housing, film, brownfields, and more, we’re here to help you put your credits to work.