The impact of a federal court’s ruling over the weekend that vacated IRS guidance for wind and solar tax credits is likely limited as developers push toward a fast-approaching July 4 deadline to get projects under construction.
“Practically speaking, I don’t think this is likely to have much impact on the market or behavior in the coming weeks,” said Heather Cooper, a tax lawyer at McDermott Will & Schulte. “The deadline is less than four weeks away.”
Under the Republican’s One Big Beautiful Bill Act, renewable energy developers must “safe harbor” their projects by July 4 to qualify for investment and production tax credits that are being phased out. If they miss the deadline, projects have to be in operation by the end of next year to qualify for the credits.