Treasury 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.
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IRS makes it harder for wind and solar projects to claim tax breaks - West Hawaii Today
WASHINGTON — The Internal Revenue Service on Friday issued new rules that would restrict the ability of wind and solar companies to claim federal tax breaks, a move that analysts said could threaten the viability of many renewable energy projects under development.
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…
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