PNW · 10-Q · 2026Q3 · Full report

Clean Energy Tax Credit Changes

PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 49 · Surprise 60 · In source text

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, curtailed clean-energy tax credits established under the Inflation Reduction Act. Wind and solar investment and production tax credits now have a phase-out deadline requiring projects to begin construction within one year of enactment or enter service by December 31, 2027. The law also restricts clean-energy projects, including energy storage, that begin construction after December 31, 2025 and receive material assistance from a prohibited foreign entity from qualifying for those credits. The Company believes projects already under construction will continue to qualify, and is awaiting regulations and other guidance for projects not yet under construction.

Key facts

• The OBBBA, signed July 4, 2025, requires wind and solar projects to begin construction within one year of enactment or be placed in service by December 31, 2027 to meet the stated phase-out deadline for specified clean-energy credits. source
• The OBBBA restricts clean-energy ITC and PTC eligibility for certain clean-energy projects, including storage, that begin construction after December 31, 2025 and receive material assistance from a prohibited foreign entity. source

Impact estimates