PNW · 10-Q · 2026Q2 · Full report

Clean Energy Tax Credit Changes

PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 47 · Surprise 60 · In source text

The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, curtailed several clean-energy tax credits established under the Inflation Reduction Act. Wind and solar investment and production tax credits now require projects to begin construction within one year of enactment or be placed in service by December 31, 2027. Energy-storage and other clean-energy projects beginning construction after December 31, 2025 may lose eligibility if they receive material assistance from a prohibited foreign entity. Pinnacle West believes projects currently under construction will retain IRA credit eligibility but is awaiting implementing regulations for other projects.

Key facts

• The IRA introduced a Nuclear PTC available from 2024 through 2032 and expanded ITC/PTC options for various technologies; the OBBBA signed July 4, 2025 curtailed several credits and required projects to begin construction within one year of enactment or be placed in service by December 31, 2027 to qualify. source
• The Company believes projects currently under construction will continue to qualify for IRA tax credits and is analyzing OBBBA awaiting regulations and guidance for projects not currently under construction. source
• APS has an aspirational goal to be carbon-neutral by 2050. source

Impact estimates