Benjamin Franklin said: “In this world nothing can be said to be certain, except death and taxes,” but the reality is that taxes aren’t so certain. The rules are continually changing, and some rules come into play only for a limited time. Of these expiring rules, some get extended while others do not. In order to take advantage of existing tax breaks, pay attention to expiration dates.
Some key dates to note:
June 30, 2026, expiration date
The One Big Beautiful Bill Act (OBBBA) put in place expiration dates for certain green energy deductions and credits. There is only a limited time left to act if you want to take advantage of breaks applicable to your business.
Alternative fuel vehicle refueling property credit. The tax credit for installing a charging station in a business is 6% of cost (30% if prevailing wage and apprenticeship rules are met), up to a maximum credit of $100,000 per item of property. The property must be located in a low-income or rural area. It applies only to property placed in service by June 30, 2026. It’s not enough merely to purchase the equipment and have it installed later.
New energy efficient home credit. Contractors that build energy efficient homes may take a tax credit of up to $5,000 per home, depending on the program requirements under which the home is built. The credit applies only to homes acquired by June 30, 2026. Contractors who have units under construction need to complete sales now or rent out their units by June 30th if they want to claim the credit.
Energy efficient commercial buildings deduction. If you own a commercial building, you may be able to deduct a set amount based on square footage. For 2026, this is $0.59 per square foot at 25% energy saving increasing at a rate of 2 cents per percentage point increased to $1.19 per square foot at 55% energy savings. The deduction applies only for property the construction of which begins before July 1, 2026. Because of the many tasks to improve a building for energy efficiency—engaging an architect and/or engineer, permitting, getting a contractor, etc.—it’s essential to get started on a desired project ASAP.
December 31, 2026, expiration date
Some business tax credits run only through the end of this year:
Small agri-biodiesel producer credit. For 2026, this is a tax credit designed to support small, domestic producers of agricultural-based biofuel. The credit is $0.20 per gallon for small producers (those with up to 15 million gallons annually) that use feedstock produced/grown in the U.S., Canada, or Mexico. The credit is transferable, which means it can be sold to a third party.
Credit for advanced manufacturing investment. This credit, which was created by the CHIPs Act of 2022, is a 25% tax credit for investments in facilities to manufacture semiconductors or related equipment. It doesn’t include a building or a portion of a building used for offices, administrative services, or other functions unrelated to manufacturing. The credit is refundable, so that a business claiming it can benefit from the credit (receive an elective payment) even if it is greater than tax liability.
Expired breaks that could be extended
A number of business tax credits expired in 2025. Some likely will not be extended (e.g., commercial clean vehicle credit), but others might. Two credits to watch for possible extension are:
Work opportunity tax credit. This is a tax credit generally is 40% of first-year wages up to $6,000 (a credit of $2,400) per eligible employee, but can be greater for hiring employees from certain targeted groups, and lower for summer youth. The credit only applies for wages paid to an employee hired on or before December 31, 2025. A bi-partisan bill entitled Improve and Enhance the Work Opportunity Tax Credit (H.R. 1177) was introduced last year and referred to the House Ways and Means Committee, but it did not go any further.
Empowerment zone employment credit. This is a tax credit of 20% on the first of $15,000 of qualified wages paid to employees who both live and work within the zone, for a maximum credit of up to $3,000 per employee.
Final thought
This discussion of expiration dates shows the importance of staying alert to tax changes. Work with a tax adviser who can keep you apprised of changes and what you need to do if you want to take advantage of favorable rules that are going to expire.
Read more about business tax breaks in this list of blogs.
