Beginning Of Construction For Solar And Wind Facilities: What's Changed?

Highlights

• The IRS on Aug. 15, 2025, released Notice 2025-42, which provides guidance on how taxpayers can establish the "beginning of construction" (BOC) of a wind or solar facility for purposes of determining whether such facility is subject to credit termination provisions added to Internal Revenue Code Sections 45Y and 48E under the One Big Beautiful Bill Act (OBBB).
• Under the OBBB, wind and solar facilities must either 1) be placed in service by Dec. 31, 2027, or 2) BOC within one year after enactment of the OBBB (i.e., by July 3, 2026).
• This Holland & Knight alert provides an overview of the historical BOC rules and how Notice 2025-42 modifies those rules for wind and solar facilities.