Recent changes to the U.S. Department of Energy’s (DOE’s) procedures for complying with the National Environmental Policy Act (NEPA), geared at streamlining the environmental review process, may offer some benefits to renewable energy projects.
The Virginia Tax Commissioner issued a ruling on the sales and use taxability of wind electric generating equipment constructed by a taxpayer and used to produce electricity for sale or resale.[1]
On July 15, the U.S. Department of the Interior (DOI) circulated an internal memorandum requiring over 68 different DOI actions related to wind and solar project development to be reviewed by DOI. We summarize and analyze that DOI memorandum here.
Functional foods designed to promote relaxation, better sleep, and improved mood have exploded in popularity, and chocolate is increasingly the delivery method of choice. Calming confections featuring ingredients like melatonin, L-theanine, magnesium, adaptogens, or CBD are marketed as “natural” stress-relievers or sleep aids. But as consumer demand rises, so too does regulatory scrutiny. Federal and state regulators, along with the plaintiffs’ bar, are watching closely as food companies make increasingly bold wellness claims about everyday indulgences.
Domestic energy production was a subject of much attention in the recently passed federal legislation. That legislation eliminated significant future tax incentives for new construction of large-scale wind and solar projects. Other energy generation sources are expected to be used more intensively and for a longer period of time than previously assumed in order to meet significant anticipated growth in domestic energy demand.
As we have discussed in recent articles and as has been well publicized, two recent actions out of Washington are significantly impacting the renewable energy industry. The recently enacted One, Big, Beautiful Bill Act (OBBBA) imposes new deadlines on renewable energy facilities to begin construction and/or be placed into service in order to qualify for tax credits. This is discussed in detail in our recent articles here.
In addition to the OBBBA, on July 7, 2025, President Trump issued an Executive Order (EO), directing the Secretary of Treasury to—within 45 days following enactment of the OBBBA (which is August 18, 2025)—strictly enforce the termination of renewable energy tax credits. This includes issuing new guidance “to ensure that policies concerning the ‘beginning of construction’ are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built.”
The One Big Beautiful Bill Act (OBBBA), signed into law by President Donald Trump on July 4, 2025, provides for enhanced restrictions on entities claiming many of the renewable energy credits established under the Inflation Reduction Act of 2022 (IRA). Namely, the bill prohibits foreign entities of concern (FEOCs), as well as domestic entities that are related to or otherwise engage in significant transactions with FEOCs, from claiming such credits. The credits that are subject to the new FEOC limitations under the bill include:
On July 4, 2025, the One, Big, Beautiful Bill Act (the Act) was enacted. Several provisions of the Act will impact renewable energy projects and the tax credits generated by such projects. Such provisions include the accelerated termination for wind and solar credits, as well as restrictions with respect to foreign entities of concern. Most of the energy provisions of the Act will take effect beginning with the taxable year beginning after that date of enactment (i.e., the taxable year beginning January 1, 2026, for most taxpayers), although there are some deviations, as described below.
The Texas legislature concluded its 89th Regular Session on June 2, 2025. During the session, the energy industry paid significant attention to legislative actions impacting the power industry in the areas of grid management, reliability, power generation and resource development. The state is seeing a soaring demand for power in the state, in part due to the substantial growth in the development of large load projects. But the legislature was also hard at work on other changes to Texas laws that likely were not on the radar of the energy industry. These changes to the corporate laws in Texas sought to make Texas (as opposed to stakes like Delaware or Nevada) the new destination-of-choice for new entity formation and to attract existing companies to reincorporate in Texas.
Under the Senate Finance Committee’s June 28th version of the One, Big, Beautiful Bill (the “Bill”), there are several limitations and requirements that would take effect based on the date a project begins construction. For solar and wind projects, unless construction begins prior to enactment of the Bill, the production tax credit and investment tax credit under section 45Y and 48E will terminate for projects that are placed in service after 2027. Additionally, certain restrictions on material assistance from prohibited foreign entities would apply to solar and wind projects which begin construction after June 16th and most other projects that begin construction after 2025. The provisions of the Bill are still being negotiated in the Senate. However, establishing the beginning of construction will almost certainly remain important for developers of renewable energy projects.