BG Opportunity Title * Clean Electricity Production Tax Credit – 26 U.S. Code § 45Y All Funding Opportunities All Funding Opportunities Share Funding Opportunity Logo * Organization Name U.S. Department of Treasury Funding Opportunity Brief * Clean Electricity Production Tax Credit – 26 U.S. Code § 45Y provides a technology-neutral tax credit for production of clean electricity. Eligible Applicant GovernmentTribal GovernmentOrganizationNonprofit/NGO/CBOBusinessOther Description Accelerated termination for wind & solarWind and solar projects that begin construction after July 4, 2026 must be placed in service by December 31, 2027 to qualify.Projects beginning construction before July 4, 2026 can still qualify if they meet safe harbor or physical work rules.Revised “beginning of construction” rules (IRS Notice 2025-42)The familiar 5% safe harbor is eliminated for most wind and solar, except for small solar systems (≤1.5 MW AC).Developers must rely on the Physical Work Test or other substantial construction evidence.IRS re-emphasized the Continuity Rule: projects must progress without unreasonable delays.Foreign Entity of Concern (FEOC) / Prohibited Foreign Entity (PFE) restrictionsNew OBBBA rules disqualify projects if owned, controlled by, or materially assisted by certain foreign entities.This applies to projects beginning construction after Dec. 31, 2025.IRS has not yet issued detailed guidance on how “beginning of construction” will apply under FEOC rules (expected in future notices).Executive Order 14315 enforcementIssued July 7, 2025, it directed Treasury to strictly enforce OBBBA’s early deadlines.Notice 2025-42 confirms that IRS will closely scrutinize attempts to “artificially” accelerate construction.Non-wind/solar technologiesGeothermal, hydro, nuclear, and storage projects are not subject to the same immediate 2027 placed-in-service deadline.However, they must still comply with construction timing and foreign entity restrictions. Available Funding Click to Edit Maximum Award Amount Click to Edit Application Deadline 12/31/2027 Tags GHG Emission ReductionFinance & Accounting × Restricted Access Page
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