Trump IRS guidance to further restrict clean energy tax credits?
27 Posts
I'd like to follow up a lobby meeting with info on the ASK page: “guidance that further restricts these credits” I believe I heard at the conference that this refers to Trump guidance to the IRS. Any source to pass along to my staffer?
2 Replies
32 Posts
I don't have specific resources, but thought that I would share what I know here. There are two avenues that are currently active with extra “guidance” that could harm solar & wind project implementation.
- Trump announced that projects on federal land would need a new sign off from DOI secretary at the end of their permitting process.
- The BBB adjusted the rules for which projects qualify for tax credits, but my understanding is that there is still a lot of vagueness that gets clarified through IRS guidance. For example, a project needs to start construction by x date to qualify. So what specifically counts as starting construction? There was guidance issued under Obama, but it's possible that the guidance could be changed.
Other people may be familiar with other potential restrictions…
78 Posts
- Issuing an Executive Order to end clean energy subsidies: This order directs the Secretary of the Treasury to terminate clean electricity production and investment tax credits for wind and solar facilities and implement enhanced restrictions related to Foreign Entities of Concern (FEOCs) according to the White House.
- Directing the Treasury Department to review the "beginning of construction" definition: This could overturn a longstanding practice allowing developers to claim tax credits after spending just 5% of project costs and potentially make it harder to qualify for safe harbor provisions, according to Reuters.
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