The United States Senate Committee on Finance this afternoon released draft text of its version of the “One Big Beautiful Bill,” which is available here. Although we are continuing to review the draft legislation, at a high level the bill would initiate a phasedown of the investment tax credit under Section 48E of the Code (ITC) and production tax credit under Section 45Y of the Code (PTC) applicable to solar and wind facilities based on when construction begins. 

• Solar and wind facilities would be eligible for the full ITC or PTC, as applicable, if construction begins in 2025.
• If construction begins in 2026, such facilities would be eligible for 60 percent of the otherwise available ITC or PTC.
• If construction begins in 2027, such facilities would be eligible for 20 percent of the otherwise available ITC or PTC.
• Thereafter, such facilities would not be eligible for the ITC or PTC.

For other types of eligible facilities, the draft legislation would adopt a phasedown of the ITC (including for storage facilities) and PTC beginning in 2033, which is not a material deviation from current law. 

This is draft legislation only, it has not been enacted into law, and there may be further changes to the legislation before enactment.