Investment Rating - The report indicates a shift in investment ratings for the EV and solar industries, with a more favorable outlook for energy storage systems (ESS) and critical minerals compared to solar and wind [16]. Core Insights - The "One Big Beautiful Bill" accelerates the phaseout of EV subsidies, expiring on September 30, 2025, compared to December 31, 2032, under the original IRA [16]. - The report highlights stricter restrictions on foreign entities, particularly from China, affecting the eligibility for investment tax credits (ITC) and advanced manufacturing production credits (AMPC) [16][17]. - There is a notable increase in domestic content requirements to qualify for additional credits, which may impact the cost structure for manufacturers [16][17]. Summary by Sections Part 1: EV Consumer Tax Credits - The final assembly of EVs must occur in North America to qualify for tax credits, with a maximum credit of $7,500 [6]. - Key requirements include MSRP limits of $80,000 for SUVs and $50,000 for other vehicles, with critical minerals and battery component restrictions starting in 2024 and 2025 respectively [6][7]. Part 2: Residential Clean Energy Credit - The residential clean energy credit remains at 30% for expenditures through December 2032, decreasing to 26% in 2033 and 22% in 2034 [10]. - No credits will be available for expenditures made after December 31, 2034 [10]. Part 3: ITC - The business tax credit for investment in zero-emission power and energy storage property is set at 30% of capital expenditures, with additional bonuses for domestic content [12]. - The credit rate will phase out based on the date of construction start, with specific thresholds for solar and energy storage systems [12]. Part 4: Advanced Manufacturing Production Credit - The AMPC will phase out for eligible components produced and sold, with a stricter non-PFE threshold compared to the Senate draft [13]. - The report emphasizes that projects with "effective control" by prohibited foreign entities will not receive credits, impacting U.S. battery production using Chinese components [16][17]. Key Changes vs. IRA - The report outlines significant changes from the original IRA, including the introduction of PFE restrictions and a more stringent domestic content requirement for tax credits [16]. - The overall stance on China has become tougher, with implications for U.S. manufacturers relying on foreign supply chains [16].