A growing number of states are taking measures to speed up renewable energy permitting and siting ahead of the July 4 construction start deadline set in last summer's federal budget law to qualify for certain expiring tax credits.
In the latest case, the Oregon House of Representatives kicked off its 2026 legislative session on Feb. 2 with the introduction of a bill that would temporarily exempt renewable energy projects from needing a site certificate from the Energy Facility Siting Council if they qualify for federal renewable energy tax credits.
House Bill 4031 applies to solar, wind, geothermal or marine energy projects seeking to qualify for valuable federal tax credits, including Section 45 and 45Y production tax credits (PTCs) as well as Section 48 and 48E investment tax credits (ITCs).
Streamlining utility-scale solar siting is a top priority of the Oregon Solar + Storage Industries Association in this year's session. Introduction of the bill comes after Oregon Gov. Tina Kotek (D) issued an executive order in October 2025 directing state agencies to accelerate renewable energy development.
The order directs relevant state agencies, boards and commissions to take necessary steps authorized by existing statutes to accelerate and prioritize siting and permitting reviews, approvals and other processes to expedite permitting and development of solar and wind energy projects seeking to qualify for tax credits by the deadline.
"With the elimination of promised incentives by the Trump administration, states must step up as the last line of defense against climate catastrophe," Kotek said when she announced her executive order. "We have to get renewable energy infrastructure built, and quickly."
The federal budget law, known as the One Big Beautiful Bill Act, set July 4, 2026, as the deadline for wind and solar projects to commence construction to qualify for tax credits. Developers then have four years to complete their projects. Treasury guidance from August 2025 clarified that projects must use a physical construction test. Projects that do not meet the July 4 deadline could also qualify if they enter service by the end of 2027.
As a result, some states are taking measures to fast-track renewable siting and permitting since ITCs and PTCs were previously available into at least the 2030s under the 2022 Inflation Reduction Act. The shortened timeline is widely expected to reduce the number of solar and wind projects, but could accelerate development in the near term as companies seek to take advantage of the shorter window.
'Time-limited window'
Oregon's executive and legislative actions follow moves in Colorado, California, New York, New Jersey and Maine.
New Jersey Gov. Mikie Sherrill (D) issued an executive order on Jan 20, her first day in office, declaring an energy emergency in the state. Sherrill called for accelerated wind and solar energy in the state.
"The sunset dates for the federal production tax credit and investment tax credit ... require urgent action to facilitate as many qualifying clean energy projects as possible to obtain those credits and thereby help alleviate the supply shortage, lower costs for New Jersey residents, and improve reliability in our state and in PJM," Sherrill said in the executive order.
New York Gov. Kathy Hochul (D) directed state agencies in September 2025 to work together to quickly advance "shovel-ready" renewable energy projects. The state also launched a solicitation for renewables to meet the tax credit deadline.
"By directing our state agencies to move projects across the finish line, we are seizing every opportunity to leverage federal incentives, reduce costs for ratepayers, and build a more resilient, sustainable and reliable energy grid," Hochul said in a news release.
Colorado Gov. Jared Polis (D) in August 2025 announced several actions the state was taking to prioritize clean energy projects. Polis directed state agencies to move fast on large-scale wind, solar, battery storage and community solar projects.
"We have a time-limited window for procurement of tax-advantaged wind and solar," Polis said at the time.
Also in August 2025, California Gov. Gavin Newsom (D) signed an executive order to accelerate and prioritize clean energy projects in the state to facilitate capture of the federal clean energy tax credits.
The Maine Public Utilities Commission in December 2025 moved up timelines to purchase new renewable power eligible for federal tax credits.
"The solicitation was conducted on an accelerated schedule and focused on advanced-stage projects capable of moving forward quickly, allowing participating states to capture available federal clean energy tax incentives before they expire," the PUC said in a news release.
