Senate Finance Committee modifies energy credit phaseouts in
The Senate Finance Committee proposal notably eliminates the placed-in-service deadline from the House-passed bill, and ties project eligibility to when the projects began construction,
Specifically, to qualify for these credits, a project's construction must begin within 60 days of the bill's enactment, and the project must be placed in service (operational) by December 31, 2028. Projects that miss either of these deadlines would no longer be eligible for either the clean electricity PTC or ITC under the House proposal.
By eliminating credits for leased residential solar systems going forward, the OBBBA would effectively remove the tax incentive for many solar leasing and power purchase agreement deals. If enacted, this change could result in forcing the residential solar industry to reevaluate its entire business model.
In effect, nuclear power projects are exempted from the extremely short 60-day window requirement. The OBBBA also provides for an earlier phaseout of the credit by requiring projects to be placed in service by December 31, 2031.
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