On July 7, days after the funds invoice was signed into regulation, President Trump issued an govt order instructing the U.S. Dept. of the Treasury to issue new guidance around foreign entity of concern (FEOC) and ITC safe harbor rules 45 days after funds invoice enactment. The funds invoice initially instructed Treasury to ascertain steering by December 31, 2026. FEOC necessities come into play for photo voltaic tasks in search of the ITC beginning January 1, 2026.
Though the funds invoice was a blow to your complete photo voltaic trade, protected harbor provisions permitting tasks to nonetheless acquire the ITC or PTC in the event that they “begin building” by a sure date — that means they spend a minimum of 5% of the general venture value, or fulfill the bodily work take a look at by putting in racking or different important venture facets — nonetheless gave the utility-scale solar market some runway. It’s now unclear if that runway will stay.
Trump’s July 7 govt order, titled “Ending Market Distorting Subsidies for Unreliable, Overseas Managed Vitality Sources” has a said mission of “eliminating subsidies for unreliable ‘inexperienced’ vitality sources like wind and photo voltaic in furtherance of the One Large Stunning Invoice Act.” The OBBA didn’t outright remove these tax credit, however slightly expedited the phase-out.
Along with making an attempt to hurry Treasury steering on FEOC, the order additionally directs the Dept. of the Inside to overview its division rules, steering, insurance policies and practices to “decide whether or not any present preferential remedy to wind and photo voltaic amenities compared to dispatchable vitality sources” inside 45 days of funds invoice enactment. The DOI, by way of the Bureau of Land Administration, approves wind and photo voltaic tasks on public lands.
