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Navigating OBBBA: phaseouts, prohibited foreign entity rules, and other new rules

Mikaela Tajo @mtajo.bsky.social · 23d

Most rooftop solar projects are below 1.5 MW and will still be able to use the 5% safe harbor, but developers will still have to navigate the new timelines and foreign entity restrictions. taxlawcenter.org/blog/navigating-obbba-phaseouts-prohibited-foreign-entity-rules-and-other-new-rules

This post builds on the briefs we published on June 20 (the House draft) and June 30 (the Senate draft) and describes the energy credit provisions as enacted in the final version of the recently-enact...

taxlawcenter.org

Mikaela Tajo @mtajo.bsky.social · 23d

The new rules block larger solar projects (>1.5 MW) and ALL wind projects from using the 5% safe harbor. They can use the significant work test, but this is a higher burden & could prevent projects from meeting the new beginning of construction deadline.

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Mikaela Tajo @mtajo.bsky.social · 23d

The other test is more fact-intensive and requires “significant” physical work to be completed, excluding certain “preliminarily activities” like obtaining permits.

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Mikaela Tajo @mtajo.bsky.social · 23d

Under the old guidance, projects could satisfy 1 of 2 tests. Most projects used the "5% safe harbor,” which considers projects “started” if they have incurred at least 5% of the total project cost (e.g., purchasing solar panels). l4gg.docsend.com/view/wgc43st...

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Mikaela Tajo @mtajo.bsky.social · 23d

To qualify for credits, solar & wind projects must begin construction by 7/4/26 (or be placed in service by the end of 2027). Longstanding Treas. guidance has clarified what it means to begin construction, but the new rules will make it harder, specifically for wind/solar.

What the New Tax Credit Guidance Means for Clean Energy Projects

Mikaela Tajo @mtajo.bsky.social · 23d

Last month Treasury released new guidance that will further restrict which wind and solar projects can claim tax credits. What do these new rules mean? ⬇️⬇️ collaborative.evergreenaction.com/blog/what-th...

The Trump administration has put up yet another roadblock to adding more low-cost wind and solar energy to the grid, forcing families to pay more for energy. States and utilities must take four key st...

collaborative.evergreenaction.com

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Reposted by Mikaela Tajo

Rachel I. Jacobson @rachelijacobson.bsky.social · Jul 31

The harmful Republican megabill slashes climate programs. @climatexchange and @evergreenaction share options for states to preserve progress: climate-xchange.org/2025/07/reco...

Here are some of my favorites below. 🧵

Reconciliation Bill Leaves Many Policy Gaps for States to Address

This memo outlines the climate and energy impacts of the budget reconciliation law and provides recommendations on how states can step in and help fill the gaps.

climate-xchange.org

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Mikaela Tajo @mtajo.bsky.social · Jul 23

Since ~2/3 of IRA $ has been spent or contracted + can't legally (important word) be clawed back, its benefits will continue to be felt through funded projects. The Rs’ shortsighted cuts will limit this progress + increase energy burden + pollution. heatmap.news/politics/ira...

Here’s How Much Money Biden Actually Spent From the IRA

When Congress rescinded unobligated funds from the historic climate law, it inadvertently answered a question climate advocates have been asking for months.

heatmap.news

Mikaela Tajo @mtajo.bsky.social · Jul 23

On top of these cuts, the law adds unworkable rules for tax credits for wind and solar + terminates credits for EVs + home energy efficiency almost immediately. These changes will lead to higher utility bills + job losses in areas facing underinvestment. taxlawcenter.org/blog/navigat...

Navigating OBBBA: phaseouts, prohibited foreign entity rules, and other new rules

This post builds on the briefs we published on June 20 (the House draft) and June 30 (the Senate draft) and describes the energy credit provisions as enacted in the final version of the recently-enact...

taxlawcenter.org

Mikaela Tajo @mtajo.bsky.social · Jul 23

Billions in environmental justice are also cut: $1.7b from the Neighborhood Access & Equity Program + $333m from the Environmental & Climate Justice program. Both critical for funding for transportation, pollution reduction, and clean energy in front line communities.

Mikaela Tajo @mtajo.bsky.social · Jul 23

CBO also shows $193m in cuts to NOAA funding for restoring and protecting coastal communities, as well as for climate research and weather forecasting ...all at a time when climate change-fueled disasters are becoming more frequent and severe.

Mikaela Tajo @mtajo.bsky.social · Jul 23

For example, CBO shows $12m of cuts to programs addressing air pollution at schools, out of the $37.5m available through the IRA. But, according to Climate Program Portal, $34m has been awarded – meaning some awarded projects hadn’t completed their contracts & may not receive it.

Estimated Budgetary Effects of Public Law 119-21, to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14, Relative to the Budget Enforcement Baseline for Consideration in the Senate

Mikaela Tajo @mtajo.bsky.social · Jul 23

The GOP budget law cut unobligated $ for many IRA programs that would improve air quality + build climate resilience + lower energy bills. New CBO #s shows cuts to $14b in climate related programs supporting states and communities www.cbo.gov/publication/...

Public Law 119-21 as enacted on July 4, 2025

www.cbo.gov

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Reposted by Mikaela Tajo

Center on Budget and Policy Priorities @centeronbudget.bsky.social · Jul 21

📢 New Executive Action Tracker Entry: New Executive Order Underscores Threats to Clean Energy

More from @mtajo.bsky.social www.cbpp.org/research/fed...

New Executive Order Underscores Threats to Clean Energy | Center on Budget and Policy Priorities

July 07, 2025: President Trump signed a new executive order doubling down on the Administration’s disastrous energy policy that will raise households’ energy costs, undermine economic opportunity, and...

Mikaela Tajo @mtajo.bsky.social · Jun 12

TLDR: The Senate EPW Bill, like the House version, guts important funding + protections for the climate. It’s bad for public health, bad for the environment, and bad for communities. While we wait for the rest of the Senate committees, CBPP will continue to document these harms.

Continued Freeze of Greenhouse Gas Reduction Fund Threatens Climate Investments in Vulnerable Communities Across the Country | Center on Budget and Policy Priorities

Mikaela Tajo @mtajo.bsky.social · Jun 12

The Senate also rescinds unobligated funds from the Greenhouse Gas Reduction Fund + repeals the authorizing statute. This would add to GGRF uncertainty + further stall deployment of low-cost energy in rural + low-income communities: www.cbpp.org/blog/continu...

One of the largest solar developments in Arkansas, energy efficiency renovations of housing for low-income seniors, and other clean energy projects prioritizing low-income communities across the...

Voters Support NEPA, Oppose Congress’ Proposed “Pay to Play” Amendment

Mikaela Tajo @mtajo.bsky.social · Jun 12

Delays implementation of a methane fee that would reduce GHG emissions & bring in fed revenues. It creates an “opt-in” fee for corporations to pay for expedited environmental reviews. These changes are bad for human health & the environment + unpopular: www.dataforprogress.org/blog/2025/5/...

A majority of voters oppose allowing companies to pay an additional fee to bypass parts of NEPA’s environmental review process.

www.dataforprogress.org

Biden Administration Strengthens Fuel Economy Standards for New Cars and Passenger Trucks

Mikaela Tajo @mtajo.bsky.social · Jun 12

Ends implementation of stronger fuel economy standards for passenger cars and trucks, which means more polluting vehicles on the road and higher gasoline costs for households and businesses. www.edf.org/media/biden-...

The strengthened Corporate Average Fuel Economy (CAFE) standards will save American families money on gas and strengthen U.S. energy security while helping to reduce harmful pollution.

www.edf.org

Cuts to Climate, Energy Funding in House Bill Would Mean Higher Costs, Fewer Jobs, Poorer Health | Center on Budget and Policy Priorities

Mikaela Tajo @mtajo.bsky.social · Jun 12

Cuts to funding for air pollution monitoring for schools, diesel emissions reduction & environmental and climate data collection. These cuts would make it harder to identify and avoid harms to communities historically overburdened by pollution: www.cbpp.org/research/cli...

To help offset the cost of its nearly $4 trillion in regressive tax cuts, the House Republican reconciliation bill includes $546 billion in cuts to tax credits and other programs designed to promote c...

With Federal Climate Funding at Risk, Policymakers Should Protect Benefits for Those Most Impacted and With Fewest Resources | Center on Budget and Policy Priorities

Mikaela Tajo @mtajo.bsky.social · Jun 12

The bill includes: cuts to millions of unobligated funding for Env. Justice & CPRG grants. Funds were for states, territories, communities to cut climate & fossil fuel pollution, adapt to climate impacts, & reduce energy & transportation costs. www.cbpp.org/research/cli...

Threatened cuts risk upending progress. House Republicans are reportedly considering large cuts to clean energy tax credits and climate funding.

Cuts to Climate, Energy Funding in House Bill Would Mean Higher Costs, Fewer Jobs, Poorer Health | Center on Budget and Policy Priorities

Mikaela Tajo @mtajo.bsky.social · Jun 12

Senate Environment + Public Works Committee Republicans released their portion of the budget + tax proposal that is expected to raise energy bills and worsen pollution. The bill mostly mirrors the House bill + repeals many federal programs created by the IRA.

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Mikaela Tajo @mtajo.bsky.social · Jun 10

The House bill includes $546B in cuts to tax credits & other programs designed to promote clean energy. Cuts would raise energy costs, undermine economic opportunity in struggling communities & hasten climate change. More in my +
@rachelijacobson.bsky.social's newest paper:

To help offset the cost of its nearly $4 trillion in regressive tax cuts, the House Republican reconciliation bill includes $546 billion in cuts to tax credits and other programs designed to promote c...