The “One Big Beautiful Bill” — Not So Beautiful for the Energy Sector

In the premiere episode of Tax Credit Talks, hosts Hallie James and Parker An unpack the far-reaching impacts of the Inflation Reduction Act (IRA) and the shifting dynamics it has created for energy tax credits and housing finance. From investor hesitation to policy execution gaps, this episode highlights how a sweeping piece of legislation is producing uneven results on the ground.

What We Covered:

• Why investor appetite is shifting
  While the IRA was meant to supercharge clean energy investment, concerns about IRS guidance delays, transferability logistics, and credit stacking rules have slowed momentum in key sectors. Investors are hesitant to engage without greater clarity.
• The good, the bad, and the bottlenecks
  The bill promised a streamlined approach, but real-time implementation challenges are revealing inconsistencies between federal intent and market outcomes.
• Cincinnati’s LIHTC momentum
  On the housing side, Cincinnati is proving how local coordination can drive successful Low-Income Housing Tax Credit (LIHTC) allocations. The city secured three awards this year, its best performance since 2022, thanks to a strong partnership with the Cincinnati Development Fund.
• New basis boosts under FY 2025
  A 30 percent basis boost for rural and tribal LIHTC projects is included in the proposed FY 2025 House budget reconciliation bill. This adjustment aims to enhance deal feasibility for bond-financed developments, particularly in under-resourced markets.

Key Takeaways:

• Energy tax credits under the IRA are promising in scope, but unclear execution is limiting short-term uptake.
• LIHTC remains a vital tool for affordable housing, even amid political scrutiny and proposals to eliminate it.
• Local partnerships can make or break successful housing developments.
• New policy levers like the proposed basis boost offer promise but require long-term planning.

Final Thoughts:

The “one big beautiful bill” is a powerful symbol of legislative ambition, but its on-the-ground outcomes are mixed. Whether you’re navigating clean energy finance or LIHTC execution, the key to success lies in understanding both the macro policies and the micro conditions shaping each market.

Listen to the full episode: The “One Big Beautiful Bill” -… – The Tax Credit Talk – Apple Podcasts
To connect with our team, email 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 more than $6 billion in credits placed across renewable energy, housing, film, brownfields, and more, we are here to help you put your credits to work.