SECTION 4. CONTINUITY

REQUIREMENT

.01 Continuous program of construc- tion . A taxpayer will satisfy the Continuity Requirement of this section 4 only if the taxpayer maintains a continuous program of construction with respect to an applicable wind or solar facility. A continuous program of construction involves continuing physical work of a significant nature (as described in section 3.03 of this notice). Unless the Continuity Safe Harbor provided in section 4.04 of this notice applies, whether a taxpayer maintains a continuous program of construction to satisfy the Continuity Requirement will be determined by the relevant facts and circumstances.

.02 Excusable disruptions to contin- uous program of construction . Certain disruptions in a taxpayer’s continuous construction to advance towards completion of an applicable wind or solar facility that are beyond the taxpayer’s control will not be considered as indicating that a taxpayer has failed to satisfy the Continuity Requirement.

The following is a non-exclusive list of construction disruptions that will not be considered as indicating that a taxpayer has failed to satisfy the Continuity Requirement:

(a) delays due to severe weather conditions;

(b) delays due to natural disasters; (c) delays in obtaining permits or licenses from federal, state, local, or Indian tribal governments, including, but not limited to, delays in obtaining permits or licenses from the Federal Energy Regulatory Commission (FERC), the Environmental Protection Agency (EPA), the Bureau of Land Management (BLM), and the Federal Aviation Agency (FAA);

(d) delays at the written request of a federal, state, local, or Indian tribal government regarding matters of public safety, security, or similar concerns;

(e) interconnection-related delays, such as those relating to the completion of construction on a new transmission or

distribution line or necessary transmission or distribution upgrades to resolve grid congestion issues that may be associated with an applicable wind or solar facility’s planned interconnection;

(f) delays in the manufacture of custom components;

(g) delays due to labor stoppages; (h) delays due to the inability to obtain specialized equipment of limited availability;

(i) delays due to the presence of endangered species;

(j) financing delays; and (k) delays due to supply shortages. .03 Timing of excusable disruption determination . In the case of a single project comprised of multiple facilities (as described in section 5.02(2) of this notice), whether an excusable disruption has occurred for purposes of the Continuity Requirement must be determined in the calendar year during which the last of multiple facilities is placed in service. In the case of a single applicable wind or solar facility, whether an excusable disruption has occurred for purposes of the Continuity Requirement must be determined in the calendar year during which the applicable wind or solar facility is placed in service.

.04 Continuity safe harbor: deemed satisfaction of continuity requirement . Except as provided in this section 4.04, if a taxpayer places an applicable wind or solar facility in service by the end of a calendar year that is no more than four calendar years after the calendar year during which construction of the applicable wind or solar facility began (Continuity Safe Harbor Deadline), the applicable wind or solar facility will be considered to satisfy the Continuity Requirement (Continuity Safe Harbor). The excusable disruption rules in section 4.02 of this notice do not apply for purposes of applying the Continuity Safe Harbor. If an applicable wind or solar facility is not placed in service before the end of the fourth calendar year after the calendar year during which construction of the applicable wind or solar facility began, whether the applicable wind or solar facility satisfies the Continuity Requirement under the Physical Work Test will be determined by the relevant facts and circumstances.

Bulletin No. 2025–36 353 September 2, 2025

For example, if construction begins on an applicable wind or solar facility on August 20, 2025, and the applicable wind or solar facility is placed in service by December 31, 2029, the applicable wind or solar facility will be considered to satisfy the Continuity Safe Harbor. If the applicable wind or solar facility is not placed in service before January 1, 2030, whether the Continuity Requirement was satisfied will be determined by the relevant facts and circumstances.