The US Treasury Department has announced a new policy that makes it harder for wind and solar projects to claim federal tax credits, the latest in a series of moves against clean energy since President Trump signed the GOP’s sweeping new tax law. The guidance would undo years of existing practice defining when a project has started construction.
Under the current law, projects can qualify by taking steps such as incurring 5% of the total cost or beginning physical construction activities. However, the new policy requires wind projects and most solar projects to show they are conducting physical work, rather than relying on this “safe harbor.” Only small rooftop solar installations would be allowed to use this safe harbor.
The crackdown has already drawn pushback from centrist Republicans and GOP lawmakers from wind-heavy states, including Sens. Chuck Grassley and John Curtis, who have placed holds on three of Trump’s Treasury nominees over concerns about the new tax credit guidance.
Clean energy experts say the guidance could be challenged in court and is an unprecedented attempt to rewrite congressional intent. The move is expected to have a significant impact on hundreds of planned wind and solar projects across the country.
Source: https://www.politico.com/news/2025/08/15/trump-solar-wind-tax-00512034