On July 4, 2025, the One Big Beautiful Bill Act (H.R. 1) was signed into law, marking the most significant change to federal clean energy policy since the passage of the Inflation Reduction Act (IRA).
While the IRA always intended for tax credits to phase out over time, this legislation accelerates that timeline dramatically—affecting projects currently in planning or development.
Many across the industry are still evaluating the implications. At Cinterra, we’ve already adapted—and we’re helping our partners do the same.
What the One Big Beautiful Bill Act Changes
Accelerated Expiration of Clean Energy Tax Credits
The Investment Tax Credit (ITC) and Production Tax Credit (PTC) are still available, but the rules are now divided into two tiers:
Tier 1: Projects that begin construction on or before July 4, 2026
- Remain eligible for the full 30% ITC or applicable PTC
- Can utilize the standard four-year safe harbor, meaning projects can be placed in service as late as mid-2030 and still qualify for credits
- Sources: Winston & Strawn, Frost Brown Todd
Tier 2: Projects that begin construction after July 4, 2026
- Must be placed in service by December 31, 2027 to qualify for any credits at all
- No credit is available if the project is placed in service after this deadline
- Source: Hodgson Russ
IRA Compliance Requirements Remain in Force
- Prevailing wage and apprenticeship requirements
- Domestic content bonuses
- Safe harbor procurement and documentation protocols
- Increased Incentives for Fossil Fuels
- The Act also introduces new tax advantages for oil, gas, and coal infrastructure projects
What This Means for the Industry
On the surface, this may seem like a setback for solar. But the real story is in the numbers—and the long-term forecast remains strong:
- Acccording to recent reports, projects the U.S. will add 206450 GW of new electricity capacity by 2030
- 206 GW Source: DoE July 2025 Report
- 450 GW Source: NextEra’s CEO News Article 206 was in the report, 450 came from Nextera CEO article
- Natural gas is only expected to provide about 75 GW
- That leaves 130–250 GW that must come from renewables—with solar positioned to lead
- Even without the ITC, solar remains the most cost-effective utility-scale option:
- According to the June 2025 Lazard LCOE Analysis, unsubsidized solar is 11–34% less expensive than combined-cycle gas in most regions
- And practically speaking:
- Developers are not canceling projects
- Most are renegotiating PPAs using change-in-law clauses, ensuring commercial terms reflect new conditions
- Source: DOE July 2025 Report
What Cinterra Is Doing Now
Cinterra is already working with partners to meet these new timelines and compliance expectations. Here’s what we’ve done:
- Audited all active project timelines to ensure alignment with the July 4, 2026 construction start deadline
- Expanded our workforce, onboarding and training new apprentices to meet upcoming labor demands
- Enhanced our compliance infrastructure for prevailing wage, apprenticeship tracking, and domestic content scoring
- Established live monitoring for Treasury/IRS guidance to adjust our execution strategy in real time
What You Need to Do Now
If your project depends on IRA tax incentives, it’s time to act with certainty. We recommend:
- Confirming your project can begin construction before July 4, 2026 to access full ITC/PTC eligibility and the four-year safe harbor
- Ensuring all safe harbor documentation is accurate and audit-ready
- Renegotiating PPAs now if you’re expecting changes to financing or tax strategy
- Collaborating with a delivery partner (like Cinterra) who understands this regulatory pivot and has the workforce to meet it
Our Commitment
The rules may change. Our reliability doesn’t.
Cinterra was built to perform in complexity, under pressure, and through change. We’re not just adjusting—we’re already aligned, staffed, and ready to move.
As the IRA era evolves, we remain your partner in:
- Policy navigation
- Project acceleration
- On-time, compliant execution
We’re not guessing. We’re acting.
FAQ
Q: Are IRA tax credits gone?
No. Projects that start construction by July 4, 2026 and use safe harbor rules can still qualify for full credits through mid-2030.
Q: What’s the deadline for projects that start after July 2026?
They must be fully placed in service by December 31, 2027, or they will not receive any federal credits.
Q: Is solar still cost-competitive without tax credits?
Yes. Lazard’s 2025 analysis confirms unsubsidized solar remains 11–34% less expensive than gas-fired power.
Q: Are projects being canceled?
No. Most developers are renegotiating PPAs using standard change-in-law clauses (DOE July Report).
Sources
- Winston & Strawn: Tax Impacts of the One Big Beautiful Bill Act
- Frost Brown Todd: BBB Act Cuts the Power
- Hodgson Russ: BBB Act Modifies Renewable Credit Rules
- U.S. Department of Energy. Clean Energy Outlook and Capacity Forecast. July 2025
- Utility Dive – NextEra Energy CEO urges ‘energy pragmatism’, April 2025
- Lazard. Levelized Cost of Energy+ Storage 2025. June 2025
- One Big Beautiful Bill Act (H.R. 1, 119th Congress). Enacted July 4, 2025
- Executive Order, Signed July 7, 2025
