Federal: Solar and wind projects not started by July 4 lose credits unless running by 2027
The federal clean-electricity credits end for solar and wind placed in service after December 31, 2027 unless construction began by July 4, 2026. That start date has passed, so for Northeast projects the record of when physical work began now governs which rule applies.
This is a federal tax rule that applies to solar and wind projects in New Jersey, New York, Connecticut and Pennsylvania only through the financing and timing it controls. Under the clean electricity production credit in 26 U.S.C. § 45Y and the investment credit in § 48E, as amended by the 2025 reconciliation act (referred to in IRS guidance as the OBBBA), an applicable wind or solar facility placed in service after December 31, 2027 does not qualify for the credits, unless construction began on or before July 4, 2026, which is 12 months after enactment. That start date has now passed. IRS Notice 2025-42 sets out how a taxpayer shows that construction has begun.
26 U.S.C. §§ 45Y(d)(4), 48E; IRS Notice 2025-42; IRS Notice 2026-15 (Feb. 12, 2026; IR-2026-23)