NextEra’s New Wind, Solar Project Starts Gird Against Trump Tax Rollback

 July 23, 2025

 

Takeaways 

·         NextEra Energy Inc. shares fell after executives did not express full confidence that its renewable projects would qualify for federal tax credits for wind and solar projects, according to Jefferies analysts.

·         Company executives' tone was "more cautious and focused on uncertainty" than expected, Scotiabank analysts said, regarding securing tax credits before they are rolled back.

·         NextEra's CEO John Ketchum said the company "believes that we've begun construction on a sufficient number of projects to cover our development expectations through 2029".

NextEra Energy Inc. shares tumbled Wednesday after executives failed to convince analysts its renewable projects would qualify for soon-to-disappear federal tax credits.

Company executives on an earnings call Wednesday “did not express full confidence” about securing the tax credits before they’re rolled back under Donald Trump’s $3.4 trillion law, Jefferies analysts said in a note. Scotiabank analysts said “management’s tone was more cautious and focused on uncertainty than we were expecting.”

NextEra’s shares fell as much as 7.1% on Wednesday, the most in intraday trading in two months.

NextEra, one of the world’s biggest suppliers of wind and solar power, said Wednesday it started construction on a spate of new clean energy projects, work it expects will qualify the firm for tax credits since construction will begin within 12 months, as dictated by the tax-and-spending legislation.

“We believe that we’ve begun construction on a sufficient number of projects to cover our development expectations through 2029,” Chief Executive Officer John Ketchum said on an earnings call.

The rollback of the tax credits has sparked a race among clean energy developers to start projects so they can qualify for tax credits. NextEra said its unregulated development unit now has a backlog of nearly 30 gigawatts, the equivalent of roughly 30 nuclear reactors.

NextEra’s plans to protect tax credits is pinned to current guidance. But earlier this month, Trump, a staunch critic of renewable energy, issued an executive order directing the US Treasury Department to more strictly define when a project has started construction, including restricting the use of efforts to lock in tax credits unless a substantial portion has been built.

NextEra’s New Wind, Solar Project Starts Gird Against Trump Tax Rollback - Bloomberg

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