Navigating Clean Energy Tax Credits Under the “One Big Beautiful Bill” Act (OBBBA)

One Big Beautiful Bill Act (OBBBA) was signed into law by President Trump July 4, 2025. With the latest Executive Order on July 7, 2025, we are watching for additional guidance from the Secretaries of Treasury and Interior. 

The "One Big Beautiful Bill Act" (OBBBA) introduces significant changes to how renewable energy projects are planned, developed, and executed in the United States. This legislation imposes strict timelines and compliance requirements for wind and solar energy projects that demand heightened precision and planning. 

For project developers, understanding the implications of OBBBA and ensuring compliance is essential. This guide unpacks the key provisions and explains how EPE’s expertise can help your projects succeed under these new standards. 

Accelerated Timelines for Wind and Solar Projects 

OBBBA sets firm deadlines for the construction and operation of wind and solar facilities. To qualify for tax credits under the new legislation, developers must adhere to one of the following schedules: 

• Start of Construction Deadline: Projects must break ground using either the physical-work test or the 5% cost-incurred safe harbor within 12 months of the bill’s enactment. 
• Operation Deadline: Facilities must be fully operational and placed in service by December 31, 2027. 

To help sponsors clear this window, EPE can help fast-track conceptual layouts, one-lines, equipment sizing, and capital expenditure (CAPEX) estimates so owners can place binding purchase orders covering at least 5 % of total project cost. We also can help draft and negotiate technical specifications for long-lead items (e.g., main power transformers, inverter-skid/BESS blocks, trackers, HV breakers) and oversee factory-acceptance tests to document qualifying “physical work.” 

Compliance with Foreign Entities of Concern (FEOCs) Provisions 

OBBBA introduces restrictions on sourcing equipment or services from Foreign Entities of Concern (FEOCs). These regulations aim to reduce dependency on suppliers from jurisdictions deemed security risks by the U.S. 

Compliance requires meticulous attention to the Material Assistance Cost Ratio (MACR), which calculates the cost share of equipment and services sourced from non-FEOC entities. Failure to meet the following thresholds risks disqualification from critical tax incentives: 

• Wind Energy Components: By 2027, at least 90% of all wind-related components must originate from non-FEOC sources. 
• Solar Energy Components: Solar facilities must achieve a minimum of 60% non-FEOC content by the same deadline. 

EPE delivers the end-to-end diligence developers need: vendor databases that flag FEOC risk and audit-ready binders that trace each component from purchase order to site delivery. With EPE’s support, you can accelerate timelines, ensure compliance, and maximize your project schedule’s efficiency under the firm deadlines of OBBBA. 

Partnering for a Reliable and Resilient Future

OBBBA represents a shift in energy policy and time-sensitive requirements for those who want to take advantage of tax credits. As with any change, developers and investors that succeed are well-informed, timely, and have the expertise and partnerships to manage complexity and risk.  

At EPE, we can help you to better understand the changes and to take the right next steps. To learn how we can help bring your clean energy projects to life under "One Big Beautiful Bill," contact our team using the form below.