States Rush to Build Clean Energy Projects to Tap Expiring Incentives
The federal tax credits can help save billions of dollars and lower electricity costs as sky-high power prices become an election issue.
Southern California Edison solar modules in Porterville, California.
Photographer: Ken James/Bloomberg
US states are moving to establish a pipeline of large-scale renewable energy projects that can qualify for billions of dollars in expiring federal tax credits.
California, Colorado, Minnesota, New York, New Jersey and Oregon are among the states expediting renewable energy projects eligible for a 30% investment tax credit. Those subsidies can help lower power prices as soaring electricity bills become a top issue in the 2026 elections and data centers drive up energy demand. But solar and wind farms need to start work by July 4 of this year and have four years to complete construction in order to qualify.