Structuring Construction and Tax Equity Bridge Financings for Wind, Solar, and Battery Storage Projects After OBBBA

Wind, solar, and battery storage projects are complex transactions involving the assessment of evolving tax incentives and the resolution of unique legal and financing issues arising from the acquisition, construction, and financing of such projects.

Recent legislative changes under the One Big Beautiful Bill Act (OBBBA) and the 2025 Reconciliation Bill have significantly modified the Inflation Reduction Act's provisions, including the termination of tech-neutral credits for certain projects and the introduction of foreign entity restrictions. The panel will explore the current legal, tax, and financing landscape, including strategies to leverage remaining incentives such as direct pay and credit transferability.

Counsel must ensure that bridge financing structures address change of control, collateral, sponsor credit support, and compliance with new FEOC restrictions. Contractual pitfalls, especially those requiring top-level client approval or long lead times, must be managed with an eye to updated tax regulations and construction timelines.

Listen as our panel of authoritative practitioners provides their perspectives and analysis on the evolving tax incentives, documentation, and financing issues for wind, solar, and battery storage projects.

I. Introduction

II. Review of common ownership and bridge financing structures and documentation

III. Overview of current tax incentives and benefits, including changes under OBBBA and 2025 Reconciliation Bill

IV. Change of control, collateral, sponsor credit support, and other financing issues

V. Compliance with FEOC restrictions, placed-in-service deadlines, and phase-out schedules

VI. Contract issues and regulatory considerations impacting project development and financing

VII. Practitioner takeaways

The panel will review these and other key issues:

• How are construction and tax equity bridge financings structured under the revised Inflation Reduction Act and OBBBA provisions?
• What are the unique issues in negotiating and structuring such financings?
• How do various contract terms and deal issues affect financing and tax incentives?
• What are the implications of FEOC restrictions and placed-in-service deadlines on financing strategies?
• How do direct pay and transferability mechanisms function under final IRS regulations?
• What impact do the phase-out timelines and bonus credit limitations have on project viability?