The One Big Beautiful Bill Act (the OBBBA), signed into law by President Trump on July 4, 2025, imposes significant restrictions on the availability of tax credits made available under the Inflation Reduction Act. Notably, under the OBBBA, wind and solar projects that will not be placed in service by 2027 must begin construction before July 4, 2026, to qualify for the tax credits. The OBBBA also narrows eligibility for the tax credits through other provisions concerning the extent to which the project relies on assistance from China or another prohibited foreign entity, fails to utilize sufficient domestically manufactured components, or involves a leasing arrangement.
Wind and solar energy companies will undoubtedly want to capture what remains of the tax credit eligibility but must work strategically with regulatory bodies — in Wisconsin, the Public Service Commission (PSC) — to expedite project reviews and approvals. Wisconsin energy projects that generate more than 100 megawatts must obtain a Certificate of Public Convenience and Necessity (CPCN) prior to construction. The process to obtain a CPCN is complex and, at least historically, can take up to a year — by statute the PSC may take up to 180 days to take action on a complete application (and there are stages of the application process prior to the determination that an application is complete) but the PSC has the authority, to extend its review period by another 180 days, upon good cause.
Wind and solar energy companies must act urgently to preserve the possibility of benefiting from the tax credits. This urgency also extends to projects that are already in the pipeline. Whether the PSC will conduct expedited reviews of CPCN applications in response to the deadline for tax credit eligibility is still uncertain. It may be that the PSC simply cannot accommodate expedited reviews, especially given the likely influx of applications and requests for expedited review over the next year.
Reinhart is well-positioned to assist wind and solar companies maximize their ability to secure tax credits for their projects. Our team of real estate and regulatory attorneys regularly assists clients through the CPCN and, where applicable, the condemnation process. We stand ready and willing to assist with your energy project needs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
