ITC And PTC Changes Under The Big Beautiful Bill Act

President Trump last week signed into law the One Big Beautiful Bill Act (the "Act"). The Act made a number of changes to the clean electricity production credit under Section 45Y of the Internal Revenue Code (the "PTC"), the clean electricity investment credit under Section 48E of the Internal Revenue Code (the "ITC"), and other renewable energy tax credits. Following is a summary of several significant provisions in the Act related to the PTC, ITC, and other tax credits.

PTC and ITC Changes

• For solar and wind projects, instead of beginning to phase out in 2032 or later, the Act instead generally provides that solar and wind facilities are eligible for the PTC or ITC only if placed in service by the end of 2027. There is an exception to this deadline for projects on which construction begins before the one-year anniversary of enactment of the Act. Any such project would, under current beginning of construction guidance, generally still be eligible for the PTC