U.S. Senate Proposes Changes To ITC And PTC

The United States Senate Committee on Finance this afternoon released draft text of its version of the "One Big Beautiful Bill," which is available here. Although we are continuing to review the draft legislation, at a high level the bill would initiate a phasedown of the investment tax credit under Section 48E of the Code (ITC) and production tax credit under Section 45Y of the Code (PTC) applicable to solar and wind facilities based on when construction begins.

• Solar and wind facilities would be eligible for the full ITC or PTC, as applicable, if construction begins in 2025.
• If construction begins in 2026, such facilities would be eligible for 60 percent of the otherwise available ITC or PTC.