"We believe that the guidelines announced are close to the best possible outcome compared to the initial discussions." The comment from Jefferies bank speaks volumes about the clarifications provided by the IRS in the United States on the taxation of renewable energies. Since Donald Trump's return to power, the sector had been fearing a radical change in treatment. This will not be the case for the time being, leading to a wave of increases among European players this morning.
The new guidelines published by the US Treasury confirm that there will be no retroactive application, which provides security for projects already underway and removes significant uncertainty regarding access to tax credits. The continuation of the four-year continuity clause allows projects starting until July 2026 to benefit from tax advantages until 2030, providing valuable visibility for industrial planning. This strengthened framework reinforces Vestas' CEO's optimistic forecasts for the US market's momentum through the end of the decade.
In addition, replacing the 5% expenditure rule with a "physical work" test broadens the eligibility options: off-site work, such as component manufacturing, is now taken into account. This gives developers and the supply chain more flexibility in organizing construction sites. Finally, the recognition of connection and permit delays as valid reasons for delays further enhances regulatory certainty.
Following in the footsteps of Vestas, Nordex (+3.5%), Orsted (+3%) and EDP Renovaveis (+5.5%) are off to a strong start this week.
