The One Big Beautiful Bill Act (OBBBA) kicked off a mad dash for solar + storage developers to take advantage of expiring federal tax credits. Some states are taking action to help bring as many renewable kilowatts to the grid as possible before the major start-construction deadline comes along on July 4, 2026.
Credit: Lightsource bp
In Oregon and Colorado, governors themselves have tried to streamline permitting and cut other red tape to get projects online faster.
Oregon Gov. Tina Kotek put forth an executive order in October 2025 called “Accelerating Wind and Solar Energy Development in Advance of Elimination of Federal Clean Energy Tax Credits.” The order instructs state agencies to take all steps necessary to accelerate and prioritize siting and permitting reviews for projects seeking to meet the July 4 ITC deadline.
“With the elimination of promised incentives by the Trump administration, states must step up as the last line of defense against climate catastrophe. We have to get renewable energy infrastructure built, and quickly,” Kotek said in a press statement. “We cannot afford to lose this critical window; every wind and solar project we help complete now directly fights the irreversible climate damage we’re racing to prevent.”
Similarly, in Colorado, Gov. Jared Polis released an executive action over the summer titled “State Commitment Prioritizing Deployment of Affordable Clean Energy,” also directing state agencies to do whatever they can to speed deployment before the deadline. Polis announced a state commitment to adopt flexible interconnection — allowing more projects to interconnect to the grid using operational software that tailors renewable energy output to match the grid’s needs.
Beat-the-deadline efforts are also happening in state legislatures and utility commissions across the country. In New Jersey and Illinois, new actions have opened more capacity in state incentive programs to help developers stack incentives and lower costs for ratepayers ahead of federal deadlines.
The Illinois Commerce Commission doubled the size of its Adjustable Block Program — opening incentives to 1,000 MW of community, commercial and small-scale solar projects. The expanded capacity prioritizes projects that can start construction before July 4.
“By acting now, Illinois is ensuring that residents and businesses benefit from the lowest-cost solar projects while federal incentives remain available — cementing the state’s position as a national model for smart, affordable clean energy growth,” said Stephanie Burgos-Veras, senior manager of equity programs at the Coalition for Community Solar Access.
In New Jersey, Gov. Phil Murphy signed a bill into law that unlocked an additional 3,000 MW of community solar in October 2025. The state focused on community projects specifically to give more residents the chance to lower their bills with clean energy.
“By accelerating the process for bringing new sources of energy online and rapidly building new energy storage facilities, we will meet growing demand while also making life more affordable for our state’s families,” said Murphy in a statement.
And in California, Gov. Gavin Newsom signed a bill to exempt solar developers from paying taxes on IRA benefits — keeping project costs down, helping to appeal to investors and spurring development before the deadline.
“SB 302 will keep energy project costs down by allowing California energy developers to realize the full value of federal tax incentives,” said Stephanie Doyle, California state director for SEIA.
Newsom also signed a bill creating a West-wide regional electricity market that will allow California to develop and sell renewable energy to other states across the Interior West, and vice versa. These efforts create new opportunities for developers working to get as many megawatts in the ground as possible with the remaining tax incentives.
“Rapidly expanding demand for new energy resources from data computing needs, aging transmission infrastructure and extreme weather conditions are raising the cost of electricity across the West. The stakes are high, and with passage of AB 825, we have an opportunity to collaborate and create a western regional market for cost-effective supply of newer clean energy resources,” said Vijay Satyal, deputy director of markets and transmission at Western Resource Advocates.
States are taking different approaches, some more explicit than others, to expedite and incentivize renewable projects as time ticks down to the start-construction deadline. Speeding up permitting, removing bureaucratic roadblocks and changing tax rules are crucial steps to deploying as much solar + storage as possible before then.
Tell Us What You Think!