Competition intensifies as developers race against time to complete solar and wind projects before Trump's renewable energy tax credit deadline expires.
## Impact of the "Big Beautiful Bill" on Clean Energy in New York
The **One Big Beautiful Bill Act (OBBBA)**, signed into law on July 4, 2025, has introduced significant changes to the U.S. energy landscape, impacting clean energy progress in New York and other states. Here are the key implications:
### 1. **Accelerated Phaseout of Clean Energy Tax Credits** - The OBBBA accelerates the phaseout of key clean energy tax credits, such as the **Investment Tax Credit (ITC)** for solar and the **Production Tax Credit (PTC)** for wind[2][3]. - Projects starting construction before July 4, 2026, can claim full credit value, but those starting after must be placed in service by December 31, 2027[2][3].
### 2. **New Restrictions and Opportunities** - The Act introduces restrictions on foreign entities accessing these credits, which could impact international collaborations and investments in New York's clean energy sector[4]. - Despite these challenges, there is a near-term opportunity to access full tax credits for projects initiated before the deadlines, and the bill offers 100% bonus depreciation for eligible projects[2].
### Actions for New York to Speed Up Project Approvals and Construction
To mitigate the impacts and accelerate clean energy projects, New York can consider the following strategies:
- **Streamline Permitting Processes**: Simplify and expedite the permitting process for renewable energy projects to help developers meet the accelerated deadlines. - **Incentivize Local Investment**: Offer state-level incentives to encourage local investment in clean energy projects, helping to offset the impact of federal tax credit phaseouts.
- **Promote Public-Private Partnerships**: Foster partnerships between public entities and private companies to leverage resources and expertise, enhancing project feasibility and speed.
- **Develop Technology-Neutral Policies**: Encourage a mix of clean energy technologies to ensure a diversified and resilient energy portfolio, as federal policies may change over time.
By implementing these strategies, New York can promote a more efficient and resilient transition to clean energy despite the federal changes.
### Challenges and Opportunities Ahead
Developers in New York have less than a year to start construction if they want the subsidies. Improving coordination between New York's energy regulators is seen as the single biggest thing the state could do to help move construction forward[5]. Arun expresses concern that if construction cannot begin, there will be no standardization or lowering of costs through economies of scale.
Close to half of the state's permitted but unbuilt projects had contracts that were canceled after post-pandemic inflation upended their finances[6]. In many states, wind and solar developers can begin construction on projects that don't have all of their final approvals, but have the main elements of their design agreed upon. However, in New York, obtaining the initial green light is difficult[7].
There are 26 permitted but unbuilt wind and solar projects in New York, which in total could unlock about 3,000 megawatts' worth of energy[8]. NYSERDA had plans to kick off a fresh round of wind and solar contracting by the end of June, but is behind schedule and plans to begin the process by the end of September[9].
The development firm Greenbacker is currently building New York's largest solar farm and has several smaller projects in the works[10]. However, the Treasury Department is tasked with updating the rules regarding Foreign Entities of Concern, giving Trump another opportunity to potentially crack down on the "Green New Scam." Trump has issued an executive order directing the Treasury Department to revisit how it defines a project's "start of construction," potentially affecting the one-year deadline of the "Big Beautiful Bill."
Meanwhile, the Department of Environmental Conservation appears to be speeding along a revived pipeline project that would bring gas into New York City and Long Island[11]. The bill could potentially upend New York's renewable energy transition. Starting in January 2026, developers hoping to claim tax credits for renewable energy projects will have to abide by restrictions on sourcing from "Foreign Entities of Concern," including those connected to the Chinese government[12].
- The One Big Beautiful Bill Act, signed in New York on July 4, 2025, has instigated a swift phaseout of investment and production tax credits for solar and wind energy, respectively, impacting the clean energy industry in Albany.
- Projects starting construction before July 4, 2026, in New York can claim full credit value, but those commencing after must be operational by December 31, 2027.
- The Act introduces restrictions on foreign entities accessing these credits, which may impact international collaborations and investments in the state's clean energy sector.
- To mitigate the impacts, New York is encouraged to streamline permitting processes, incentivize local investment, promote public-private partnerships, and develop technology-neutral policies.
- Developers in New York have a deadline of less than a year to start construction for subsidies, and improving coordination between energy regulators is essential to expedite construction.
- Governance challenges such as permits, finances, and potential foreign entity restrictions have put approximately 26 permitted but unbuilt wind and solar projects in New York at risk, totaling about 3,000 megawatts of energy.
- The legislation's impact on the state's renewable energy transition is significant, as developers will be subject to restrictions on sourcing from foreign entities with ties to governments like China starting from January 2026.
