Trump Administration Tightens US Wind and Solar Tax Credit Rules
The Trump administration has released updated guidance affecting how wind and solar projects can qualify for Biden-era tax credits. Under the One Big Beautiful Bill Act, renewable energy developers now have until 6 July 2026 to begin physical construction to be eligible for these incentives.
Previously, developers could qualify by spending just 5% of a project’s capital costs. The new guidance changes the focus, emphasizing the type of physical work rather than a fixed percentage or monetary threshold. The Treasury Department states: “Provided that physical work performed is of a significant nature, there is no fixed minimum amount of work or monetary or percentage threshold required to satisfy the Physical Work Test.”
The American Clean Power Association (ACP) has voiced concern over the accelerated phase-out of clean energy tax credits. CEO Jason Grumet commented that this decision could undermine both the integrity of the energy grid and the legislative process.
At LSP Renewables, we are closely monitoring these changes to ensure our clients and partners stay informed about evolving wind and solar project incentives in the US. Developers planning new projects should take note of the updated construction deadlines and Physical Work Test requirements to secure available tax credits.
Credit: ReNews