§48E Solar and Wind Deadlines After July 4, 2026: What Credit Buyers Must Verify

The 2025 law (Pub. L. 119-21) ended §48E and §45Y for wind and solar facilities unless they began construction by July 4, 2026 or are placed in service by December 31, 2027. For a buyer, the question is which side of the line a project is on, and whether the evidence holds. This page explains the rules and what to ask.

The two routes

1. Placed in service by December 31, 2027. Wind and solar facilities placed in service after that date lose the credit unless they fall into the next route (§48E(e)(4)).
2. Construction begun by July 4, 2026. The termination applies only to facilities whose construction began after the date 12 months after enactment (July 4, 2026), per the statute's effective-date note. Those projects must still show continuous work. Crux reports that safe-harbored projects keep eligibility only if placed in service by about 2030.

Energy storage and other technologies are not subject to this termination (see our storage guide).

How "beginning of construction" is proved

• Physical work test: beginning significant physical work of a substantial nature, on site or off.
• Five percent safe harbor: paying or incurring at least 5% of total cost. Notice 2025-42 (Aug. 2025) removed this for wind and for solar over 1.5 MW AC, for facilities that had not begun construction before September 2, 2025. On June 6, 2026, the U.S. District Court for the District of Columbia vacated Notice 2025-42 (Oregon Environmental Council v. IRS). Law-firm and market summaries report that the government did not file a notice of appeal by the August 5, 2026 deadline, and the extension window closed September 4, 2026, so the five percent safe harbor under the earlier beginning-of-construction guidance is again available (Clifford Chance; Cenet Capital). Treasury could still issue new guidance, so ask which test the project relied on.
• Continuity: the continuous construction or continuous efforts requirement, with a four-calendar-year safe harbor in the IRS notice.

What a buyer should ask

Question	Why
Which beginning-of-construction test did the project use?	Physical-work starts and five percent safe harbor starts carry different evidence. Cenet reports buyers price on it.
Provide the evidence: invoices, contracts, work logs, transformer or custom-component orders.	Evidence supports the date; for safe harbor, it supports the 5% or work claim.
What is the expected placed-in-service date vs. the continuity deadline?	A late project can lose the credit.
Is there a foreign-entity exemption by start date?	The material assistance rule applies to construction beginning after December 31, 2025 (§48E); ask which start date the seller is relying on for each rule.
Who bears loss if eligibility fails?	Indemnity, guaranty or insurance should cover credit loss, interest and penalties.

What this means for pricing and supply

Crux estimates more than 170 GW of wind and solar was safe-harbored before the deadline, so there is a large pipeline of §48E and §45Y credits through about 2030. But sellers must prove eligibility, which is why documentation affects price (pricing).

The court case appears settled for now, since no appeal was reported by the deadlines. Treasury could still issue new beginning-of-construction guidance, and any new rule would need its own effective-date analysis. Confirm current status with your counsel before you sign. See the 2025 law changes and the §48E buyer guide.

Educational information only, not tax, legal or investment advice, and no outcome is promised. Rules and figures were checked against the cited sources on November 2, 2026; they change, so confirm with your CPA and counsel before acting. Market figures are third-party data and are not Veritas quotes. See our disclaimer.