Energy & Environment
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Energy & Environment
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Judge axes Trump guidance restricting green credits |
© AP Photo/Ted Shaffrey, File
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While the ruling is a win for renewable energy supporters, it comes less than a month before a key deadline to phase out the credits entirely under Republicans’ “Big Beautiful Bill,” so it’s unclear how wide-reaching the decision will be.
Last year’s One Big Beautiful Bill Act phased out tax credits for solar and wind energy, saying projects can only get them if they start construction before July 5, 2026 or are placed in service before 2028.
At issue in the case is the Internal Revenue Service (IRS) definition of starting construction.
D.C. federal Judge Colleen Kollar-Kotelly wrote that since 2013, the IRS has recognized two ways that projects can begin: by starting “physical work of a significant nature” or by incurring costs of five percent or more of a project’s total cost.
The Trump administration’s guidance for the green tax credits only includes the “physical work” pathway and excludes the five percent pathway.
Striking down the Trump guidance, Kollar-Kotelly, a Clinton appointee, wrote that the exclusion of projects that have incurred five percent of their costs was arbitrary and capricious.
But Kollar-Kotelly noted in her ruling that because of the impending July construction deadline, renewable developers still may not have all the information they need to decide whether to invest in wind and solar projects.
“Unfortunately, significant uncertainty will exist no matter how this Court resolves this case and what remedy it awards,” she wrote.
Read more at TheHill.com.
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Welcome to The Hill’s Energy & Environment newsletter, I’m Rachel Frazin — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.
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How policy will affect the energy and environment sectors now and in the future:
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As the war in Iran passes the 100-day mark, the cost for America’s airline industry is mounting.
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President Trump’s focus on repair and beautification projects around Washington, D.C., risks backfiring on Republicans ahead of the midterms as the issue of affordability takes center stage across the country.
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News we’ve flagged from other outlets touching on energy issues, the environment and other topics:
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Mass Sloth Deaths in Florida Are a Warning About Wildlife Trade and Pandemic Risk, Scientists Say (Inside Climate News)
Politico folds E&E News ahead of broader energy push (Semafor)
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Upcoming news themes and events we're watching:
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- The House Energy and Commerce Committee will hold a hearing on bills that aim to speed up nuclear reactor licensing
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Two key stories on The Hill right now:
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President Trump on Monday called on Senate Majority Leader John Thune (R-S.D.) to “immediately fire” Senate Parliamentarian Elizabeth MacDonough to clear the way for Senate Republicans to pass the SAVE America Act, which would require proof of citizenship to register to vote and photo ID to cast a ballot. Read more
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Scott Pelley, the longtime “60 Minutes” correspondent who was fired by the network last week after criticizing its new leadership, is sparking scorn from conservatives over a new interview with the New York Times. Read more
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You’re all caught up. See you tomorrow!
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