Truth to Power - Episode 11

On this week’s episode of #TruthtoPower, our Founder & CEO, Philip Totaro looks into the changes to the IRS guidelines in the USA that could impact eligibility for both the investment and production tax credits.

The tax and budget bill which was signed into law on the 4th of July 2025 in the USA has left all #renewableenergy companies reeling a bit. But one of the most profound impacts for #windenergy comes in the from a likely change to the standard definition of the “start of construction” that is used to qualify projects for the production tax credits.

The most likely change to the safe harbor requirement would be to reduce the length of time that you can safe harbor. It’s currently up to 4 years, but that could be significantly reduced. Another likely change will be to combine the safe harbor requirement and the physical work requirement. The current rules make this an either / or situation today, where you can choose one.

As a result of all this, IntelStor expects a surge in corporate power purchase agreements. This will come as a result of some of these legal changes in the PTC eligibility dates as well as the pressure applied to project developers from these anticipated changes in the criteria.

The increasing demand from technology companies and data centers, as well as a desire to lock in a long-term fixed PPA in the face of a potential surge in power prices will lead corporate power buyers to try to lock in more lucrative deals sooner rather than later as they anticipate these price increases.

Have a listen today, and get in touch with your best questions about the USA or any other country around the world.

This show examines data driven insights for the energy sector, with a focus on renewables. To subscribe to IntelStor Research Notes and get early access to our latest content as well as these Truth to Power weekly editorials, visit https://lnkd.in/grfixJn