Investment Tax Credits (ITCs) remain one of the most effective tools available to local power companies (LPCs) and private businesses looking to accelerate energy infrastructure investments. With recent federal legislation revising eligibility and critical deadlines approaching, the time is now to use ITCs toward planned projects. Seven States has closely monitored every stage of legislative changes to the ITC policies, ensuring that project partners stay informed on evolving opportunities and risks. Beyond tracking policy shifts, Seven States has actively advocated for protecting ITC provisions to our federal, state, and local delegations, reinforcing their long-term value for the communities they serve. Following the passage of the One Big Beautiful Bill and subsequent changes by Treasury, here are seven key takeaways on how to utilize ITC to lower costs for anticipated solar and battery storage projects. Seven States recently completed its ITC registration of a battery storage asset and is prepared to guide project partners through these opportunities, as well as offer technical expertise, project management, and financing coordination to maximize every dollar of value. 1. Don’t Miss Critical Deadlines Timing is essential when it comes to ITCs. Credit rates often decline over time, and most projects must meet “begin construction” requirements by July 4, 2025 to secure the highest incentives. Proper documentation is essential to qualify. Seven States helps members stay ahead of these timelines with expert guidance on compliance, permitting, and project execution. 2. Battery Storage Projects Remain Eligible One of the most impactful updates to ITC policy is the protection of standalone battery storage. Moreover, ITCs help make solar-plus-storage a practical reality. These solutions provide load management, outage resilience, and support for emerging operational integrations. Seven States offers the know-how to design and finance these systems, helping members capture the full benefits. 3. Solar Projects Remain Eligible Solar energy continues to be one of the biggest beneficiaries of ITCs. By covering a significant portion of upfront costs, ITCs make solar projects more affordable and financially attractive for LPCs and businesses. This enables owners to grow their generation portfolios, reduce risk, and deliver cost savings to end users. Pairing ITCs with Seven States’ technical expertise ensures solar installations are optimized for performance and long-term community benefit. 4. Be aware of Foreign Entities of Concern (FEOC) Policies Recent updates to federal policy now restrict the use of ITCs for projects that source equipment or materials from “foreign entities of concern,” such as China. This shift makes supply chain diligence more critical than ever, as project owners must carefully select vendors and partners to ensure ITC eligibility and avoid costly disqualifications. Seven States can help navigate these evolving requirements by vetting technology providers, coordinating compliant procurement strategies, and reducing the risk of ineligibility—ensuring projects move forward with confidence and maximum financial benefit. 5. Financing Complexity Requires Expertise Navigating ITC rules, financing structures, and transferability provisions is not simple. The upside is substantial, but so is the complexity. Seven States provides the expertise needed to manage these elements, from structuring deals and securing tax equity to coordinating compliance. 6. The Cost of Waiting Is High Between phasedown schedules, rising project costs, and supply chain constraints, waiting to act can mean missing out on millions in incentives. Project Owners that move quickly will lock in higher ITC rates, secure financing on favorable terms, and be first in line for limited equipment and contractor availability. Seven States is ready to help move projects from planning to implementation before windows close. 7. Seven States Is Your ITC Partner Seven States brings deep technical knowledge and financial coordination expertise. As a trusted partner, Seven States can help LPCs and businesses identify the right projects, capture available incentives, and deliver more reliable energy at a lower cost. The time to act is now—and with Seven States, you don’t have to navigate the ITC landscape alone.
On September 4, 2025, Tri-County EMC, in partnership with Seven States Power Corporation, TVA, TDEC, and Tennessee Tech University celebrated the ribbon cutting of 4 new EV Fast Chargers, marking another step forward in building transportation infrastructure which supports the numerous auto manufacturers in the area. These stations provide EV drivers with the ability to charge quickly and conveniently. The installation of these new charging stations represents not only an investment in technology but also an investment in the communities served by Tri-County EMC. By offering reliable, high-speed charging, the cooperative is making it easier for residents, visitors, and businesses to travel, commute, and explore all their community has to offer. The project showcases the power of collaboration between local power companies and Seven States Power Corporation in driving innovation across the Tennessee Valley to support economic development and growth of the region.
Seven States Power Corporation’s Board Chairman, Jeff Dykes, and President & CEO, Betsey Kirk McCall, met with Congressional leaders earlier this summer as part of a strategic initiative to advance funding to install technologies that make power more efficient, reliable, and abundant. Dykes and McCall sought to amplify the need for greater federal support to Tennessee Valley LPCs for increasing America’s energy infrastructure during a time where creative options are needed against the backdrop of unprecedented growth. A primary objective of the trip was to listen to legislators’ areas of focus and educate the leaders on how Seven States supports the Valley through times of transition. Many LPCs have voiced concerns over the volume of requests they are receiving to supply energy to data centers. Dykes and McCall emphasized the opportunities Investment Tax Credits (ITC) and alternative financing provide for accelerating large-scale projects that can supply this growing demand for energy. To date, more than 1200 data centers are in development across the U.S. that will consume an estimated 149.6 -239.3 TWH annually. That represents the equivalent of 15-25 large nuclear plants running continuously to supply the need. Dykes and McCall stressed how cooperatives like Seven States can leverage funding models that alleviate the capital outlays for and accelerate construction of projects that can accommodate the expected growth in the Valley over the next decade from these data centers. “It will take LPCs, TVA, communities, companies, and developers working together on such projects to meet the need and keep the lights on,” said Dykes. “We understand that these data centers represent an opportunity for investment in the region. These dollars will improve communities and attract high quality economic development prospects. We want to ensure our member LPCs and TVA are supported and prepared to deliver this opportunity to the Valley,” said McCall. Dykes and McCall also underscored that Seven States was created by LPCs, in partnership with TVA, as a strategic solution to TVA’s debt ceiling limitations—without amending the TVA Act. From 2007 to 2013, Seven States became the first —and remains the only— LPC-led organization to successfully negotiate a sale/leaseback agreement with TVA to co-own a utility-scale generation asset: the Southaven 800MW Combined Cycle Gas Plant. This makes Seven States uniquely qualified as an in-Valley solution to finance and co-own generation assets with TVA. “Seven States was created for moments like this. We often serve as the designer or developer, deploying capital and project management expertise to build reliable or advanced energy infrastructure on behalf of LPCs. This allows LPCs to avoid the burden of raising capital or navigating complex regulatory issues,” said McCall. Another key focus of the trip was to share project updates on the $439 million in funding secured earlier this year through the U.S. Department of Agriculture’s New ERA program. Dykes and McCall outlined how this investment will be used to deliver 250MWs of additional power—aligning with national priorities on energy dominance and security. While in Washington, the team also met directly with USDA officials to provide a progress report on the project. “We are at a pivotal moment where federal partnerships can accelerate the progress our members are already making,” McCall said. “Our goal is to ensure their contributions—and their challenges—are clearly understood as Congress shapes the future of energy policy.” More recently, McCall was also in the area conducting meetings during President Trump’s One Big Beautiful Bill event where Zach Stewart of Sequachee Valley Electric Cooperative was among those recognized for their service to the nation in the energy industry. McCall was on site as the new Rural Utilities Services Administrator at USDA, Karl Elmshaeuser, was announced. McCall met with Christopher McClean, former Acting RUS Administrator as part of a series of meetings to further map project details related to the $439 million awarded to Seven States by USDA. By engaging directly with lawmakers and federal agencies, Dykes and McCall are working to ensure that regulatory frameworks reflect on-the-ground realities. These Washington outreach efforts reinforce Seven States’ commitment to building an energy system that is affordable, reliable, and future-focused. Dykes and McCall expect continued conversations throughout the year as the Valley’s energy future takes shape.
