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States Can Accelerate Clean Energy

Action Alert September 2025


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Take Action

President Biden established tax credits for solar and wind power projects, which generate electricity without emitting greenhouse gases that contribute to climate change. But President Trump shortened the time window that the credits are available and tightened restrictions on obtaining them. However, states can take action to expedite these clean energy projects. Urge your governor to facilitate solar and wind projects in time for them to receive federal tax credits.


Background

The Inflation Reduction Act, signed by President Biden in 2022, extended the federal government’s clean energy tax credits into the 2030s. The policy offered developers a 30% tax credit for investments in energy projects that don’t produce carbon emissions. A separate production credit for projects in operation offered money for every unit of clean electricity they generated.

However, President Trump is phasing out tax credits more rapidly. Projects must now start construction by July 4, 2026, to qualify for the credits, or be operational by the end of 2027. Last August, the Treasury Department made construction requirements more restrictive, so it is more difficult for new solar and wind projects to qualify for tax credits.

Another hurdle is the “Foreign Entity of Concern” requirement. Starting January 1, 2026, developers must prove that they did not receive assistance from so-called “Prohibited Foreign Entities” (PFEs) to remain eligible for the solar and wind tax credits. It’s particularly notable that China, a major global supplier of solar and wind energy components, has been designated a PFE.


Why Now

With the window of time for tax credits narrowing, and the requirements for receiving them growing more stringent, public attention has turned to the role that state governors and legislators can play to help deploy clean energy projects in time to qualify for federal clean energy tax credits.

When it comes to clean energy projects, states have long struggled to speed up permitting decisions, reduce regulatory hurdles and add new power to the grid. However, recently some governors have directed state agencies to streamline clean energy siting and to fast-track permits for wind and solar projects. They also have urged utilities and regulators to ensure new power can quickly connect to the grid. Some state regulators have accelerated their timelines to sign contracts for new energy, in hopes of getting more projects started before the fast-approaching construction deadline. Other states are building up public-private partnerships to deliver better financing for clean energy. States have established “green banks,” state energy financing institutions, or both.


Jewish Perspectives

Taking initiative is an integral principle in Jewish life. As we enter the season of teshuvah, return, repentance, and heshbon hanefesh, regrets often surface; things left undone, unsaid, or unpursued. One of Judaism's highest values, the middah (principle) of zerizut (alacrity), urges us to act with vigor in fulfilling mitzvot, honoring vows, and paying wages. Abraham himself is praised for rising early to act in Genesis in order to follow the commands of The Divine. Delay invites obstacles, missed opportunities, and even outright loss. The Mekhilta de-Rabbi Ishmael, echoed by Rashi on Exodus 12:17, offers a deeply clever wordplay: just as we guard at Pesach the matzah, so it will not rise and become chametz (leaven), we must guard a mitzvah so it will not sour through hesitation.


Sample Message to Your Governor

Subject: State Support for Wind and Solar

I support solar and wind power because they have zero greenhouse gas emissions, which are a main contributor to climate change. I am concerned about climate change because… insert your personal reasons

New wind and solar projects need to get off the ground as quickly as possible, in order to take advantage of two federal tax credits: the Production Tax Credit (45Y) and Investment Tax Credit (48E). These credits phase out by 2028.

I am writing you because your office can help identify the obstacles and the solutions to building new wind and solar projects in the state.


How to Contact Your Governor

Find your Governor at this website: https://www.usa.gov/state-governor. It will take you to your governor’s home page. From there, look for a link to contact your governor.


Learn More

 
 
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