Notice on solar container policy requirements

The IRS today released Notice 2025-42, providing guidance on the "beginning of construction" requirements for wind and solar facilities in relation to the termination of clean electricity production credits (section 45Y) and clean electricity investment credits (section 48E). Physical Work Test is the sole method for determining BOC for solar and wind facilities that begin construction (under previous BOC notices) after September 1, 2025. The One Big Beautiful Bill (OBBB) generally preserves various energy tax credits, including Production Tax Credits (PTCs) under. The IRS today released Notice 2025-42, providing guidance on the "beginning of construction" requirements for wind and solar facilities in relation to the termination of clean electricity production credits (section 45Y) and clean electricity investment credits (section 48E). The guidance aligns. This notice provides guidance, consistent with Executive Order 14315 of July 7, 2025, Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources, 90 F.R. 30821 (Executive Order 14315), regarding when construction of an applicable wind facility or applicable solar facility. In 2011, California adopted a Renewable Portfolio Standard (RPS) requiring that at least one-third of the state’s electricity come from clean energy sources by 2020. The California RPS program was established in 2002 by Senate Bill (SB) 1078 (Sher, 2002) with the initial requirement that 20% of. The IRS on Aug. 15, 2025, released Notice 2025-42, which provides new guidance on how taxpayers can establish that they have begun construction of a wind or solar facility for purposes of determining whether such facility is subject to credit termination provisions added to Internal Revenue Code. From revised federal guidance on the Investment Tax Credit (ITC) to state battles over net metering and renewable standards, these updates will shape the trajectory of solar deployment nationwide. On August 15, the U.S. Department of the Treasury issued new guidance modifying how large solar.