New Deadline for Clean Energy Tax Credit Demands Strategic Response from Developers

The recently passed “One Big Beautiful Bill Act” (H.R. 1) has introduced both a hard reality and a fleeting opportunity for the renewable energy industry. While the rollback of clean energy tax credits and introduction of Foreign Entity of Concern (FEOC) restrictions are already shifting the landscape, there’s still a strategic window open for those who can move fast and with discipline.

At Veriforce, we work closely with companies across the energy sector, including renewable energy developers, EPC contractors, and utilities, to help them adapt, scale, and deliver projects that are compliant, safe, and ready for long-term success. We’ve seen firsthand how operational and workforce risks can delay or even derail time-sensitive projects. Now, with new clean energy tax credit eligibility cliffs fast approaching, avoiding those risks has never been more important.

Here’s what renewable energy companies need to focus on to take advantage of the remaining clean energy tax credit window, and how to scale quickly without compromising safety, compliance, or quality.

1. Compress Project Timelines with Execution Discipline

The new law sets a ticking clock: wind and solar projects must begin construction by July 4, 2026, or be placed in service by December 31, 2027, to qualify for the production tax credit (PTC) or investment tax credit (ITC) under Sections 45Y and 48E. In real terms, that leaves 17 months to mobilize, source, and break ground on multi-million-dollar infrastructure.

Success now hinges not only on aggressive scheduling but also on the reliability of execution. That means verifying that contractors, vendors, and subcontractors can meet timelines and regulatory expectations.

Scaling quickly doesn’t mean rushing blindly. It means standing up processes for:

• Contractor prequalification and onboarding at pace without skipping safety or financial due diligence

• Proactive compliance tracking as rules evolve, especially around FEOC-related sourcing

• Auditable documentation that supports credit eligibility under potentially retroactive guidance

The message: speed is essential, but only when paired with certainty.

2. Build a Resilient, Compliant Workforce Supply Chain

The Act’s FEOC provisions present a particular challenge for global companies or those relying on international supply chains. For projects that begin construction after December 31, 2025, the project-level FEOC rules will apply, potentially disqualifying credits if any material assistance is sourced from prohibited entities.

With no clear guidance yet from the Treasury, the safest course is to lock in construction before that deadline. But “beginning construction” is not just a milestone. It’s a legal threshold, and it may soon be harder to meet under revised definitions.

In this context, scaling projects responsibly means ensuring:

• Workers and contractors are properly credentialed and authorized

• Supply chains are traceable and auditable for FEOC compliance

• Labor, safety, and training records are unified and readily accessible

It’s tempting to cut corners to move faster, but poor documentation or misaligned compliance standards could invalidate clean energy tax credits eligibility. Developers should ensure their compliance systems are agile, unified, and built for scrutiny.

3. Use Known Structures to Reduce Financing Risk

While the Act didn’t change core tax credit monetization tools such as partnership flips or direct transfers under Section 6418, the rising uncertainty around eligibility criteria means investors are more cautious. Financing partners demand clarity, not just about the tax equity structure, but about the project’s risk profile.

That includes:

• Safety records and contractor management

• FEOC exposure mitigation

• Environmental compliance

• Workforce qualification and training standards

Projects that can demonstrate strong governance and clean execution will have an edge when negotiating with tax equity investors or strategic acquirers.

4. De-Risk with Proactive Oversight, Not Reactive Scrambling

The risk in moving quickly is well documented: placing large non-refundable orders or mobilizing crews based on assumptions that may be invalidated by upcoming Treasury guidance. Still, the cost of inaction may be even higher.

The right path is measured acceleration, moving decisively, but with embedded oversight.

That means program managers need real-time visibility into:

• Contractor performance

• Site safety trends

• Compliance with evolving construction and sourcing rules

At Veriforce, we’re seeing forward-leaning developers implement integrated contractor management systems to de-risk execution. These systems not only centralize prequalification, insurance tracking, and safety audits, but also help provide the defensible paper trail needed to withstand future regulatory reviews.

Final Thoughts: Execute Now, with Confidence

The One Big Beautiful Bill Act may have narrowed the runway for renewables, but it also sharpened the incentive to act now. There’s still time to qualify for clean energy tax credits, but only for companies that can scale their development programs rapidly and responsibly.

That means prioritizing execution certainty, workforce compliance, and proactive risk management. In this new era, those who can balance speed with safety, and complexity with clarity, will be best positioned to seize the opportunity while it lasts.