Overview

• The Treasury Department faces a 45-day deadline to submit proposals narrowing safe harbors and tightening the definition of construction start.
• Revisions are expected to raise the cost-incurred safe-harbor threshold from 5% to as much as 15% and exclude certain off-site activities.
• Some developers are pausing project work while others are accelerating equipment purchases and formal safe-harbor filings to secure credits.
• Clean Energy Associates warns that stricter tests could jeopardize about 60 GW of planned U.S. solar capacity through 2030.
• The moves build on the OBBBA’s accelerated phaseout deadlines and reflect broader administration efforts to scale back federal support for wind and solar.