Judge Scraps Trump Policy Limiting Clean Energy Credits
Judge Colleen Kollar-Kotelly ruled that the IRS failed to provide adequate reasoning for removing a provision that allowed developers to secure tax credits by incurring five percent of project costs. The decision restores a key safe harbor for wind and solar projects seeking federal subsidies.
A United States federal judge vacated a Trump administration policy that restricted the ability of wind and solar projects to claim federal tax subsidies. The ruling reverses an IRS change from last August that tightened "under construction" definitions for clean energy developers. The decision restores a pathway for developers to qualify for 30% tax credits by meeting specific spending thresholds rather than proving continuous physical work.
