US judge scraps Trump policy restricting wind, solar tax breaks
The ruling restores the 5% safe-harbor test for projects seeking federal renewable credits, a change that could expand eligibility before July 4.
- On Saturday, the U.S. District Court for the District of Columbia overturned the Internal Revenue Service's strict rules, reinstating the 5% safe harbor provision for renewable energy tax credits.
- The Trump administration had previously eliminated this 5% threshold, mandating that projects over 1.5 megawatts show physical construction progress to qualify for the tax credits.
- D.C. federal Judge Colleen Kollar-Kotelly ruled the change "arbitrary and capricious," finding the agency failed to back up its justifications for eliminating the safe harbor pathway.
- While supporters like the Oregon Environmental Council celebrated the decision as a "huge win," developers face uncertainty as the Big Beautiful Bill phases out credits on July 5, 2026.
- Market participants may need to await an appeal outcome for legal certainty, as Crux Climate cautioned that few developers can mobilize within the 26 days remaining before credits expire.
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9 Articles
Judge: Trump Admin Can't Restrict Tax Credits for Wind, Solar
Judge tosses Trump bid to restrict renewable energy tax credits
A federal judge over the weekend struck down a Trump administration effort to restrict tax credits for wind and solar energy. While the ruling is a win for renewable energy supporters, it comes less than a month before a key deadline to phase out the credits entirely under Republicans’ “Big Beautiful Bill,” so it’s unclear how wide-reaching the…
Federal Court Tosses Out Trump’s Limits on Solar and Wind Tax Credits
Current conditions: Des Moines, Iowa, is bracing for thunderstorms through Thursday night • Temperatures in Touggourt, in northern Algeria, are soaring north of 103 degrees Fahrenheit • European forecasters expect the brewing El Niño conditions forming now could become the strongest ever recorded. THE TOP FIVE1. Federal court tosses out Trump’s strict limits on solar and wind tax creditsLast August, the Internal Revenue Service issued strict new…
Judge Halts IRS Rules that Punish Solar and Wind
WASHINGTON, D.C. (June 8, 2026) – – In a win for energy affordability, a federal judge struck down the Internal Revenue Service’s (IRS) guidance that unfairly and illegally restricted tax credits for wind and solar projects. In a decision issued late Saturday, a federal judge vacated the IRS guidance (or Notice) that altered the standard […] The post Judge Halts IRS Rules that Punish Solar and Wind appeared first on YubaNet.
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