Certainty for Our Energy Future Act
The Certainty for Our Energy Future Act would make two main changes to federal clean-energy tax incentives and add a new restriction tied to national security concerns. First, it would narrow the wind and solar components of the clean electricity production credit (PTC) and the clean electricity investment credit (CEIC) by excluding wind and solar facilities whose construction begins after December 31, 2030 from eligibility. Construction-start rules would continue to be determined using existing guidance and tests (e.g., the Physical Work Test, Safe Harbors) as of January 1, 2025. The amendments to these credits would take effect January 1, 2026. Second, the bill creates a new rule denying a broad set of clean-energy tax benefits to “disqualified” companies connected to certain countries of concern (China, Russia, Iran, North Korea), with an implementation and effective-date process that relies on Treasury guidance to be issued within 180 days after enactment and then 180 days after that guidance is published. In short, the bill would gradually phase out wind and solar credits for new projects starting after 2030, while tightening eligibility for any clean-energy tax benefits for companies tied to listed countries, with a delayed but mandatory implementation path for the latter.
Key Points
- 1Termination of wind and solar credits for new facilities: The term “qualified facility” for the clean electricity production credit (Section 45Y) and the clean electricity investment credit (Section 48E) would exclude facilities that generate electricity from wind or solar energy whose construction begins after December 31, 2030. Other technologies are not similarly carved out by this provision.
- 2Construction start rules preserved: For purposes of determining when construction begins, the bill adopts the existing guidance (Notice 2013-29 and related IRS guidance) and applies the same tests (Physical Work Test, Five Percent Safe Harbor, Continuity Requirements, Continuity Safe Harbor) as in effect on January 1, 2025.
- 3Effective date for the credit changes: The amendments to sections 45Y and 48E take effect on January 1, 2026.
- 4New denial of benefits for disqualified companies: A new Sec. 7531 would deny clean energy tax benefits to “disqualified companies” connected to countries of concern (China, Russia, Iran, North Korea). This denial would apply across a wide list of energy tax incentives (e.g., 30C, 40, 40A, 45, 45Q, 179D, and more).
- 5Treasury guidance and phased effective date for the new denial: Treasury must issue guidance within 180 days of enactment, and the applicability of Sec. 7531 would apply to taxable years beginning after the date that is 180 days after that guidance is published.