Changes to US federal tax credits are placing greater emphasis on construction timelines, project completion and supply chain compliance for wind and solar developments, according to GlobalData. The company’s report, North and South America Renewable Energy Policy Handbook 2026, examines the implications of the One Big Beautiful Bill Act, enacted in July 2025.
The legislation introduced provisions to terminate the Section 45Y Clean Electricity Production Credit and Section 48E Clean Electricity Investment Credit for applicable wind and solar facilities placed in service after 31 December 2027, subject to statutory exceptions.
The revised framework distinguishes between the deadline for beginning construction and the deadline for placing a project in service. The 4 July 2026 deadline for meeting the beginning-of-construction requirements under the statutory transition provisions has passed. For projects not covered by exceptions, the main remaining milestone is the 31 December 2027 deadline for entering service.
Eligibility also depends on compliance with restrictions on material assistance from prohibited foreign entities. In February 2026, the US Department of the Treasury and the Internal Revenue Service (IRS) issued guidance on these restrictions, which apply to certain clean electricity facilities and energy storage technologies. The applicable requirements depend on factors including when construction begins and which tax credit provisions apply.
The IRS has also issued guidance on the termination of the wind and solar credits. Developers therefore need to consider both project timelines and the applicable rules on ownership, sourcing and material assistance when assessing eligibility.
The changes apply to the US federal policy framework and do not establish a common deadline for renewable energy projects across the Americas. Canada, Mexico and South American countries have their own legislative, regulatory and incentive frameworks.
