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ARTICLE · 18 AUGUST 2025

New BOC Guidance Released

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On August 15, 2025, the IRS released new beginning of construction (BOC) guidance for solar and wind facilities claiming production and investment tax credits under sections 45Y and 48E of the Internal Revenue...

United StatesEnergy and Natural Resources
Shariff N. Barakat
Shariff N. Barakat
Mary Alexander
Mary Alexander
Jerome L. Garciano
Jerome L. Garciano
Lily Veronica Esfandiary
Lily Veronica Esfandiary
Amy S. Elliott
Amy S. Elliott
Christopher Treanor
Christopher Treanor
Jeffrey D. McMillen
Jeffrey D. McMillen
Zachary Rudisill
Zachary Rudisill
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On August 15, 2025, the IRS released new beginning of construction (BOC) guidance for solar and wind facilities claiming production and investment tax credits under sections 45Y and 48E of the Internal Revenue Code in IRS Notice 2025-42 (the Notice). The revised BOC guidance was mandated by President Trump in an executive order released on July 7, 2025.

The Notice largely follows prior BOC guidance with respect to physical work, and, as a result, should allow many solar and wind projects to avoid the December 31, 2027, placed in service deadline that was introduced in the "One Big Beautiful Bill Act" (the PIS Deadline). However, use of the 5% Safe Harbor has been relegated to smaller solar projects only. Included below is a high-level summary of the Notice.

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