Pictured above: Cherrytree President Melina Ambrosino (bottom, right) and other professionals in the solar power investment field visited Capitol Hill earlier this year to voice their opinions on the need for continued incentives to support clean energy initiatives.
Note: this post will be continually updated as new information about the legislative becomes available. Latest revision: July 7, 2025
The domestic policy package that the president signed into law on July 4 will likely affect many federal government programs moving forward, including tax credits for clean energy projects still in development.
The staff and management of The Cherrytree Group has been closely following the bill as it advanced through both houses, and Cherrytree’s President Melina Ambrosino has traveled to Washington to lobby on the behalf of our clients and investors. As is usual with complex federal legislation, some details of the initiatives are unclear during its early days.
Here are possible impacts of the bill in its current form, relating to tax credits for developers and investors:
It appears the federal Investment Tax Credit (ITC) for solar programs will likely phase out for projects that are not placed-in-service by December 31, 2027. It’s important to note that the ITC still remains as a viable credit, and in fact battery storage projects will continue to be eligible for the ITC . The deadline for commencing construction on solar projects will be 12 months after this bill’s enactment, and the projects will still be eligible for full ITC credit so long as they are placed-in-service by December 31, 2027.
Conversely, federal tax credits for low-income housing projects will be enhanced under the law, and the historic tax credit will also remain — or even be enhanced.
Brownfields programs, which are administered by individual states, will remain unchanged.
Safe Harbor provisions are expected to safeguard many existing projects. At Cherrytree, we advise clients to closely follow Safe Harbor guidelines as they plan their financial strategies in the coming months.
As we have watched the shifting political landscape over the past number of years, the Cherrytree Group has pivoted our own investment strategy to directly building and purchasing assets such as solar power generation plants — and we continue to evaluate solar projects for ownership. We then work with individual investors to allow them to reduce their personal income tax liabilities by purchasing tax credits from these projects.
Updates to this post will be made as more information becomes available. Please don’t hesitate to contact us at the Cherrytree Group if you have any questions or concerns about your tax credit acquisition or real estate development strategy.
