Investors Favor Clean Energy Projects Using Expired Tax Credit

Tax credit investors are prioritizing clean energy projects that began construction by the end of last year to avoid uncertainty and additional requirements created by the GOP’s tax law.

The recent tax law rolled back most of the Democrats’ clean energy tax credits and added new restrictions that aim to prevent prohibited foreign entities, such as China and Russia, from benefiting from the tax credits.

That’s causing investors—such as banks and corporations—to have more interest in clean energy projects that are eligible for the Section 48 investment tax credit that expired at the end of 2024, said Jim Alderson Smith, ...