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An analysis by Leo Berwick, Taxand USA
Our US member firm Leo Berwick has published a series of updates on major changes to federal clean energy tax incentives. Key developments include IRS Notice 2025-42, which removes the 5% Safe Harbor (except for small solar) and makes the Physical Work Test the only route to qualify for tech-neutral credits under Sections 45Y and 48E.
The One Big Beautiful Bill Act (OBBBA) also introduces new challenges, particularly around Foreign Entity of Concern material limitations and subsidy terminations, with further guidance expected following President Trump’s July 7 executive order. The updates highlight crucial implications for solar, wind and storage developers, from construction thresholds to procurement strategies, as the US tax credit landscape rapidly evolves.
You can read the full updates here for more information:
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