Treasury Implements Stricter Rules for Solar and Wind Tax Credits

The U.S. Treasury has rolled out new regulations that make it more difficult for solar and wind projects to qualify for federal tax subsidies, a move backed by President Trump’s recent legislation.

On Friday, the Treasury announced changes redefining what qualifies as a project under construction. Now, developers of large solar or wind installations must actually complete physical construction work, rather than just proving capital investment. This aligns with a recent executive order from Trump that aims to restrict tax credit eligibility until significant construction is evident.

Since his inauguration, Trump has often criticized wind and solar energy, calling such sources reliable but costly, and emphasizing a reliance on imports from China. The new law he signed last month stipulates that projects must either commence construction by July of next year or start operations by the end of 2027 to be eligible for additional bonus tax credits, which could further boost the standard 30% tax credit.

In a recent discussion, Breitbart News Tech editor Colin Madine joined London Bureau Chief Oliver “JJ” Lane to highlight the potential downsides of wind and solar energy and explore Trump’s stance against what he labels a “green energy” scam.

Energy Secretary Chris Wright has also voiced that wind and solar should function competitively in the market without relying on ongoing taxpayer funding. He indicated that the stricter project rules are a crucial step in that direction.