Trump administration deepens crackdown on solar and wind tax credits

Politico

13 hours ago

The GOP law terminated existing investment and production tax credits for solar and wind projects that start producing electricity after 2027, but provided more time for projects that begin construction within a year.
Trump then directed Treasury to 'strictly enforce' the end of the credits for wind and solar facilities, including by issuing new guidance concerning when a project is deemed to have begun construction. Traditionally, that longstanding metric has allowed projects to qualify by taking steps such as incurring 5 percent of a project's total cost or beginning physical construction activities.
Tax lawyers and clean energy developers have warned the guidance could mark an unprecedented and legally dubious attempt to rewrite congressional intent, and could be challenged in court. Grassley has also said he would object to consideration of the Treasury nominees until he can be 'certain that such rules and regulations adhere to the law and congressional intent.'
But the guidance will have immediate impact for hundreds of planned solar and wind projects across the country. Adrian Deveny, founder and president of policy advisory firm Climate Vision, said the new guidance will 'pull the rug out from under the entire pipeline of wind and solar projects that are in development.'
Deveny, who helped craft the clean energy credits as a former policy director for Democratic Senate Leader Chuck Schumer, said Trump is 'determined to jack up American energy bills.'
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, in a statement called it a 'blatant rejection' of what Congress passed in the tax law.
In the weeks following Trump's directive, the administration has undertaken a host of actions across agencies to further imperil wind and solar development, including major actions at the Interior Department that have received pushback from some Senate Republicans.
The new Treasury guidance — which is not open to public comment — will apply to projects after Sept. 2.