WEC · 10-Q · 2026Q3 · Full report

Clean Energy Tax Credit Changes

WEC ENERGY GROUP, INC. · 2026-10-30 · Importance 40 · Surprise 42

The Inflation Reduction Act provides $258 billion in energy-related provisions over 10 years, including renewable-energy tax benefits, production tax credits, investment tax credits, and transferability of credits. WEC entered into agreements to sell the majority of the production tax credits it expects to generate in 2026 and a portion of credits expected in 2027 and 2028. The One Big Beautiful Bill Act, enacted in July 2025, modified clean-energy credits: qualifying solar and wind projects that began construction by July 4, 2026, may earn current credit rates if placed in service within four years, while later-starting projects face a December 31, 2027 in-service deadline for credits. The law also imposes prohibited-foreign-entity material-assistance requirements on solar and wind projects beginning construction after December 31, 2025; a federal court vacated revised construction safe-harbor rules in June 2026, and WEC’s 2027–2031 capital plan reflects the law’s impacts.

Key facts

• WEC Energy Group entered into agreements to sell the majority of the production tax credits it expects to generate in 2026 and a portion of those expected in 2027 and 2028. source
• The OBBBA allows solar and wind projects beginning construction by July 4, 2026, to earn current-rate tax credits if placed in service within four years after construction begins. source
• Under the OBBBA, solar and wind projects beginning construction more than one year after its enactment must be placed in service by December 31, 2027, to qualify for PTCs and ITCs. source
• Under the OBBBA, wind and solar projects beginning construction after December 31, 2025, must satisfy prohibited foreign entity material-assistance requirements. source
• A federal court vacated the revised beginning-of-construction safe-harbor rules in June 2026 and remanded the issue to the IRS; WEC Energy Group said uncertainty remains. source
• The Inflation Reduction Act provides $258 billion in energy-related provisions over 10 years and has helped reduce WEC Energy Group's cost of investing in emissions-reduction and clean-energy projects. source