Judge Overturns Trump Policy Limiting Wind and Solar Tax Incentives, Impacting Clean Energy Development
A U.S. District Court judge has nullified a policy from the Trump administration that restricted federal tax subsidies for wind and solar energy projects. The policy, implemented last year, was part of President Trump's broader efforts to curb the growth of clean energy technologies, which he criticized as unreliable and overly subsidized. Judge Colleen Kollar-Kotelly ruled that the Internal Revenue Service (IRS) did not provide sufficient justification for removing a longstanding definition of what constitutes a project under construction. This definition was crucial for projects to qualify for a 30% tax credit, which could be further increased with bonuses. The lawsuit against the IRS rules was filed by several environmental and consumer advocacy groups, including the Oregon Environmental Council and the Natural Resources Defense Council, as well as the city of San Francisco. They argued that the rule change would increase electricity costs and hinder the development of clean energy projects.