Many MindedA narrowing window for US solar and wind projects to keep their tax credits
The 2022 Inflation Reduction Act gave solar and wind developers about a decade of expected access to the investment and production tax credits. One analysis after it passed projected 155 additional gigawatts of solar and wind by 2030 and over $270 billion in added investment. The One Big Beautiful Bill Act, signed in July 2025, shortened that timeline and tightened qualification rules.
The core rule: projects must be placed in service by the end of 2027 to keep the credits. The exception covers projects that began construction by July 4, 2026, which generally get four calendar years to finish, so 2026 starters have until the end of 2030. Under IRS rules, construction can begin through significant physical work, on or off site, or by paying or incurring at least 5 percent of total project costs, often through equipment purchases. The IRS lists five factors for judging whether a project is placed in service, including permits, critical preoperation tests and grid synchronization, and it assesses case by case. Heather Cooper of McDermott Will & Schulte said some developers who missed the July 4 date on paper might still show earlier construction through smaller equipment contracts, tracked internal costs or early site work.
For abundance, the point is cost. Solar and wind are the cheapest sources of new power, and a shrinking credit raises what they cost to build. Projects with borderline economics are most exposed to extra costs and delays. Interconnection timelines matter, and transformers have long lead times. New Section 232 tariffs on imported polysilicon and solar products, including modules, take effect December 4, and modules landing after that will cost more. Rules on foreign entities of concern also deny credits over certain ties to China, Russia, North Korea or Iran.
Caveats: this is sponsored content, funded by the event sponsor Intersolar & Energy Storage North America. The definitions of "placed in service" and "begin construction" leave room for interpretation. The source text is also truncated. The article says the law did not crush clean-energy growth as expected, but it did create confusion over eligibility and timing.
Source: Canary Media