US EditionTreasury Department sets limits on remaining wind and solar tax credits
The Treasury Department’s new rules require physical work to start by July 2026 for wind and solar projects over 1.5 MW to qualify for tax credits, tightening previous standards.
- On Friday, the Treasury Department released guidance placing new restrictions on safe-harbor rules for wind and solar tax credits, requiring projects to meet more difficult work requirements.
- Following the enactment of the One Big Beautiful Bill Act six weeks ago, the Trump administration ordered the Treasury Department to limit so-called 'green' energy subsidies.
- The guidance requires projects above 1.5 MW to use a Physical Work Test and eliminates the 5% safe-harbor safe harbor, listing excusable delays like severe weather.
- Industry stocks responded positively as Senator Chuck Grassley said the guidance 'seems to offer a viable path forward' for wind and solar industries, with solar firms like Sunrun rising on Friday.
- Effective September 2, 2025, the guidance and a July 2026 construction start deadline are likely to slow wind and solar project deployment, industry experts say.
8 Articles
8 Articles
Trump admin tightens vise on wind and solar with new tax rules
The Trump administration has set up yet another roadblock for wind and solar power in the U.S. — one that will make it harder for clean-energy developers to qualify for federal tax credits before they expire next summer. Treasury Department guidance released Friday puts new restrictions on the “safe-harboring” rules…
Trump tightens grip on solar and wind incentives
A fresh salvo in the battle over clean energy subsidies has landed, with the Trump administration rolling out strict new rules on tax credits for solar and wind projects. As reported by Politico, the Treasury Department’s latest guidance slashes eligibility for these lucrative incentives, following an executive order from President Trump to clamp down hard on what he sees as bloated handouts. This move signals a clear intent to rein in programs …
Treasury Tightens Rules for Wind and Solar Tax Credits, But Offers Leeway
Climate advocates balked at the new hurdles for wind and solar. Still, analysts say the industry may have dodged a bullet. By Marianne Lavelle, Aidan Hughes Wind and solar projects will have to meet more difficult work requirements to continue to access federal tax credits over the next four years, under guidance the Trump administration unveiled Friday.
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