US judge scraps Trump policy restricting wind, solar tax breaks
The ruling restores a long-used 5% threshold for proving construction start, a change advocates say could preserve tax credit access for renewable developers.
- 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.
21 Articles
21 Articles
Treasury Department Guidance Restricting Green Credits Struck Down by Judge
A U.S. judge has struck down a Trump administration policy implemented last year that made it harder for wind and solar energy projects to claim federal tax subsidies. In a ruling on Saturday, Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia said the Treasury Department’s IRS had failed to give an adequate reason for eliminating a longstanding definition for what it means for a project to be considered unde…
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…
Judge Blows Away Trump's Tax Rules On Wind And Solar - Tampa Free Press
A federal judge in Washington, D.C., has struck down Internal Revenue Service guidelines that restricted tax credits for wind and solar projects. In a ruling issued late Saturday, U.S. District Judge Colleen Kollar-Kotelly vacated the IRS guidance, known as Notice 2025-42. The policy had altered the standard for when a renewable energy project officially “begins […] Judge Blows Away Trump’s Tax Rules On Wind And Solar
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