IRS Sued Over Anti-Solar & Anti-Wind Tax Rules - CleanTechnica

A coalition of tribal utilities, local governments, consumer, and environmental groups has filed a lawsuit against the IRS and Treasury Department challenging new tax credit rules that disproportionately and unfairly target wind and solar energy projects. The IRS recently eliminated a key method for renewable energy companies to prove construction commencement, a requirement to qualify for federal tax credits before their July 4, 2026 expiration. Plaintiffs argue this change arbitrarily singles out solar and wind projects without adequate justification, disrupting over a decade of established rules and likely leading to higher electricity prices for consumers. The lawsuit, led by the Oregon Environmental Council and joined by groups such as the NRDC, Public Citizen, Hopi Utilities Corporation, and several local government offices, contends that the IRS’s actions are part of a broader pattern by the Trump administration to impede renewable energy development. The plaintiffs emphasize that these restrictive tax rules threaten clean energy growth, increase pollution, and exacerbate climate-related harms, while also raising utility costs for vulnerable populations. They seek