This whitepaper examines the financial implications for solar projects following the enactment of the One Big Beautiful Bill (OBBB). According to the document, while the OBBB reduces the investment tax credit (ITC) for solar projects, it maintains the ITC for energy storage projects. Additionally, the bill allows energy projects to be depreciated over a one-year timeline instead of the five-year Modified Accelerated Cost Recovery System (MACRS) schedule previously established under the Inflation Reduction Act and earlier legislation.
The report provides an analysis of these changes and their potential impact on solar project financing. The adjustment in depreciation timelines is highlighted as a significant shift from previous legislative frameworks.