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The U.S. Treasury Department issued new guidance that tightens the rules for what counts as the “beginning of construction” on wind and solar projects, clearing up how large-scale renewable builds qualify for tax incentives, reports EC&M.
Under the updated standard, most projects must now show actual physical work on-site or under contract rather than simply spending 5 % of project costs.
Smaller solar projects with 1.5 MW or less remain eligible under the old rule bundle.
For electricians and contractors, the change means stricter timelines and documentation for renewable energy jobs.
As utilities and developers rush to meet the deadlines, skilled trade professionals who understand the new requirements will stay ahead in bidding and staffing major clean-energy projects.
Source: Electrical Contractor
Treasury Department Issues Stricter Start of Construction Rules for Solar and Wind Projects
In September, the Treasury Department issued new guidance on the “beginning of construction” rules for solar and wind projects seeking the 48E Investment Tax Credit and 45Y Production Tax Credit.
It is believed that the Trump administration’s tightening of these rules for renewable energy projects will make it more difficult for projects to obtain the tax credits.
Already strict rules under the One Big Beautiful Bill Act passed in July imposed requirements that projects must pass a “physical work test” to qualify for tax credits.
These rules enacted conditions that solar and wind projects must demonstrate that “physical work of a significant nature” and a “continuous program of construction” have started and been maintained on a project.
More specifically, they must begin construction by July 2026 or be “placed in service,” meaning reaching commercial operations, by Dec. 31, 2027.
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