Enacted in August 2022, the Inflation Reduction Act (the “IRA”) expanded energy tax credits by increasing credit amounts, broadening eligibility beyond wind and solar, and allowing credits to be developed and sold, as outlined here . The winds have now shifted . Two years later, the One Big Beautiful Bill Act (the “OBBBA”) slows that momentum by delivering a final blow to wind and solar , terminating the tech-neutral investment tax credit (“ITC”) and production tax credit (“PTC”) for projects that are not placed in service before 2028, with a safe harbor for projects that begin construction within 12 months of enactment. The OBBBA also introduces sweeping “foreign entity of concern” limitations that could disqualify many projects from the credits entirely. The wind-down doesn’t stop there . On July 7, Trump issued an executive order giving Treasury 45 days to issue new guidance on what it means to begin construction, dispelling any doubt about ...
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