Overview
- The Oregon Environmental Council led the filing against the IRS and Treasury, joined by NRDC, Public Citizen, Hopi Utilities Corporation, Woven Energy, the city and county of San Francisco, and the Maryland Office of People’s Counsel.
- The suit challenges August guidance that removed the 5% cost-based safe harbor for wind and solar projects of 1.5 MW or larger, leaving only a physical-work test while retaining the 5% option for small solar.
- Court filings claim the change was directed by President Donald Trump without reasoned explanation, evidentiary support, or statutory grounding, and the agencies have not provided a substantive response.
- Plaintiffs cite immediate harms, including an 8‑megawatt Hopi solar project facing added costs and risk and San Francisco warning the policy will hinder its net-zero power procurement.
- They argue the shift threatens financing and deployment as credits can cover 30% to 50% of project costs and the 30% investment tax credit sunsets on July 4, 2026, with the case joining other challenges such as a recent court ruling against a wind leasing freeze.