The Trump administration announced a new policy Friday, revising guidelines for wind and solar projects to claim federal tax credits. The move is aimed at fulfilling President Donald Trump’s pledge to House conservatives who supported his massive spending and tax law.
Under the revised guidance, developers will be required to demonstrate physical work on their projects, rather than relying on a 5 percent “safe harbor” threshold. Solar facilities generating less than 1.5 megawatts will be allowed to use the safe harbor. However, many clean energy industry experts have warned that the new guidance could lead to court challenges and disrupt hundreds of planned wind and solar projects.
The guidance does not go as far as some industry stakeholders had feared, maintaining a four-year “continuity window” for projects to be placed into service after construction begins. The Trump administration’s actions aim to fulfill pledges made by President Trump to House conservatives but have drawn pushback from centrist Republicans and GOP lawmakers from wind-heavy states.
The House Freedom Caucus praised the new guidance, saying it aligns with Congress’s intent in enacting a tax law. However, some senators, including Sens. Chuck Grassley and John Curtis, placed holds on Treasury nominees after failing to secure assurances on the new tax credit guidance. The moves represent the latest action taken by the Trump administration to derail wind and solar projects since passage of the GOP’s sweeping new tax law.
Source: https://www.politico.com/news/2025/08/15/trump-solar-wind-tax-00512034?nid=0000014f-1646-d88f-a1cf-5f46b7bd0000&nname=playbook&nrid=0000014e-f0fa-dd93-ad7f-f8ff93760001