Groups sue Treasury, IRS over solar and wind tax credit rules

By Kelsey Tamborrino | 12/18/2025 04:29 PM EST

The complaint takes aim at how solar or wind projects are deemed to have started construction.

Wind turbines operate near a field of solar panels outside Palm Springs, California.

Wind turbines operate near a field of solar panels outside Palm Springs, California. Mario Tama/Getty Images

A coalition of tribal, environmental, local and consumer groups filed a lawsuit Thursday challenging the Trump administration’s rules making it harder for wind and solar projects to earn federal tax credits.

The complaint — filed in the U.S. District Court for the District of Columbia — represents a push against the Trump administration’s policy actions targeting the renewable energy industry.

The suit takes aim at how the Treasury Department determines when construction of solar or wind projects officially begins, a key metric that allows developers to claim the tax credits and one the administration sought to limit.

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The groups, led by the Oregon Environmental Council, alleged in their lawsuit that those new rules unfairly and illegally discriminated against wind and solar projects, and violated the Administrative Procedure Act.

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