On July 7, days after the finances 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 finances invoice enactment. The finances invoice initially instructed Treasury to ascertain steerage by December 31, 2026. FEOC necessities come into play for photo voltaic tasks searching for the ITC beginning January 1, 2026.
Though the finances invoice was a blow to all the photo voltaic business, protected harbor provisions permitting tasks to nonetheless gather the ITC or PTC in the event that they “begin building” by a sure date — which means they spend no less than 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, International Managed Power Sources” has a said mission of “eliminating subsidies for unreliable ‘inexperienced’ vitality sources like wind and photo voltaic in furtherance of the One Huge Stunning Invoice Act.” The OBBA didn’t outright get rid of these tax credit, however slightly expedited the phase-out.
Along with making an attempt to hurry Treasury steerage on FEOC, the order additionally directs the Dept. of the Inside to overview its division rules, steerage, insurance policies and practices to “decide whether or not any present preferential remedy to wind and photo voltaic services compared to dispatchable vitality sources” inside 45 days of finances invoice enactment. The DOI, by way of the Bureau of Land Administration, approves wind and photo voltaic tasks on public lands.
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