Implications of Recent Executive Orders on Renewable Energy Projects

CRC-IB is closely monitoring and analyzing the potential implications of President Trump’s recent executive orders (EOs) on renewable energy projects and associated federal programs. These EOs are expected to create some uncertainty, particularly around funding eligibility, with restrictions outlined that are likely to face legal challenges in the near future.

Impact on Key Federal Programs: While the tangible impacts remain uncertain, we do not anticipate direct changes to the Investment Tax Credit (ITC) or Production Tax Credit (PTC). However, federal grants, leasing, and permitting on federal lands, particularly in sectors like offshore wind and EV charging, could face temporary disruptions. This includes delays in funding and approval processes as federal agencies assess the new direction from the EOs.

Though the situation is still evolving, it is important to note that the Inflation Reduction Act (IRA) remains the law of the land, and any material changes to its provisions would require congressional action, a process expected to unfold over a longer period. Early drafts of potential tax law revisions are not expected until late Q1 or Q2 2025.

Short-Term Market Uncertainty: We anticipate the uncertainty caused by the EOs may delay early-stage projects and cause some tax equity investors to adopt a wait-and-see approach. This could further exacerbate existing constraints in the capital markets, particularly for projects in the pre-COD phase, as regulatory and legislative guidance evolves.

Despite these challenges, it’s important to note that the framework supporting ITCs, PTCs, and their transferability remains robust, providing a foundation for ongoing project financing.

Ongoing Support and Next Steps: CRC-IB is committed to providing strategic guidance and up-to-date information as these developments unfold.

Please contact us if you’d like to discuss how these changes may impact your specific projects or financing plans.