On July 7, days after the budget law was signed, President Trump stated an executive order that the American department of the treasury instructed To give new guidelines on the foreign entity of concern (FEOC) and ITC Safe Harbor rules 45 days after setting the budget. The budget account originally dedicated Treasury to establish guidelines by December 31, 2026. FEOC requirements play a role for solar projects that are looking for the ITC from January 1, 2026.
Although the budget drawing was a blow to the entire solar industry, Safe Harbor provisions with which projects can still collect the ITC or PTC if they “start building” on a certain date-which means that they issue at least 5% of the total project costs or the physical work test is always sufficient by racking or other important project aspects. It is now unclear whether that runway will remain.
Trump’s Executive Order of 7 July, entitled “Ending Market Distorting Subsidies for unreliable, foreign controlled energy sources” has a stated mission to eliminate “subsidies for unreliable ‘green’ energy sources such as wind and solar energy to promote one big beautiful Bill Act.” The OBBA did not eliminate these tax credits downright, but has previously accelerated the phasing out.
In addition to trying to speed up the Treasury guidelines on FEOC, the order also gives the interior department to assess its department instructions, guidance, policy and practices to “determine whether a preferred treatment for wind and solar facilities offers compared to shipping energy sources” within 45 days after budgeting account. The DOI approves wind and solar projects on public land through the agency or land management.
