Clean Energy Technologies (NASDAQ: CETY) has secured a strategic boost through continued eligibility for federal clean energy incentives under the newly enacted One Big Beautiful Bill Act (OBBBA). The Irvine-based company’s waste heat recovery systems, biomass combined heat/power solutions, and energy storage technologies qualify for one of Washington’s most coveted perks: either a 30% investment tax credit (ITC) or production tax credits of 1.5 cents per kilowatt-hour (PTC).
While rival sectors like solar, wind, and hydrogen face fresh regulatory headwinds, CETY emerges as an unexpected winner in the $369 billion clean energy incentive landscape. The tax benefits – maintained through 2032 before gradual phaseouts begin in 2033 – create a decade-long competitive advantage for projects meeting emissions and domestic sourcing requirements.
Strategic Advantages
- Full eligibility maintained for critical 30% ITC through 2032
- Exemption from new restrictions impacting renewable competitors
- 12-year runway for tax-advantaged project development
- Nasdaq compliance roadmap established through 2025
Considerations
- Credit reductions begin 2033, eliminating incentives by 2035
- Strict emissions verification and domestic sourcing protocols required
- Ongoing Nasdaq minimum price compliance efforts
Market Analysis
CETY gains regulatory arbitrage opportunity as policy shifts create uneven clean energy playing field.
The OBBBA’s selective incentives position CETY’s thermal efficiency solutions as a hedge against tightening regulations in mainstream renewables. Unlike photovoltaic projects now facing 40% domestic content thresholds, CETY’s waste heat systems can utilize existing industrial infrastructure while meeting revised “zero emissions” criteria through closed-loop operations.
This regulatory shelter enables CETY to offer quicker ROI timelines – particularly valuable for energy-intensive industries facing 2026 EPA emissions rules. The company’s duel-path qualification (grandfathered pre-2025 projects or new compliant installations) provides unusual flexibility in project financing.
Nasdaq’s November 2025 compliance deadline gives CETY 16 months to demonstrate market confidence – a timeline now buoyed by strengthened tax incentive visibility. With institutional investors requiring clean energy exposure but wary of regulated sectors, CETY’s niche positioning could attract fresh capital inflows.
07/08/2025 – 10:39 AM
IRVINE, Calif., July 8, 2025 – Clean Energy Technologies (CETY) solidified its position in the energy transition race today as federal policy shifts under the OBBBA preserve lucrative incentives for its core technologies. The legislation carves out specific accommodations for thermal efficiency systems that convert industrial waste heat and organic matter into grid-ready power.
To maintain full credit eligibility, projects must meet four pillars of compliance:
- Third-party verified zero operational emissions
- 55% domestic component sourcing by 2026
- Union-scale labor compensation
- Exclusion of foreign entity partnerships
CEO Kam Mahdi emphasized the operational implications: “From data center cooling recovery to cryptocurrency mining heat recapture, our solutions turn industrial byproducts into profit centers. Unlike intermittent renewables, our baseload-capable systems meet both environmental and reliability mandates.”
The policy tailwind comes as CETY addresses its Nasdaq listing requirements, with executives confirming a multi-pronged strategy to meet the $1.00 minimum bid price threshold by late 2025. Analysts suggest the extended incentive timeline could accelerate institutional interest in the small-cap innovator.
Key Considerations
How does CETY’s tax benefit compare to solar/wind projects?
While renewables face increased domestic manufacturing requirements, CETY’s thermal systems face lower localization hurdles due to existing industrial infrastructure utilization.
What operational risks remain?
Supply chain diversification for battery components and biogas feedstock pricing volatility present ongoing operational challenges.
How critical is the Nasdaq compliance timeline?
Maintaining exchange listing remains crucial for institutional ownership, with 2025 representing both regulatory and financial inflection points.
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