Breaking: We WON our lawsuit against Trump’s attacks on clean energy!

Late last year, OEC filed a lawsuit against the IRS over Trump's unlawful rollback of tax credits for wind and solar energy projects. Yesterday, a federal judge made her ruling: We won the lawsuit!

Read the full press release below. To stay up to date with the latest news as the case develops, be sure to sign up for our Grassroots Action and Information Network mailing list.

Case brought by a Tribal utility, city , and environmental and consumer advocates argued that politically motivated tax guidance illegally hurt renewable energy and would raise customers' bills. A federal judge agreed.

WASHINGTON, D.C. (June 8, 2026) - In a win for energy affordability, a federal judge struck down the Internal Revenue Service's (IRS) guidance that unfairly and illegally restricted tax credits for wind and solar projects.

In a decision issued late Saturday, a federal judge vacated the IRS guidance (or Notice) that altered the standard for when a wind or solar project "begins construction"-the critical date for determining whether the project qualifies for federal tax credits that are set to expire next month.

At the direction of President Trump, the IRS had singled out solar and wind projects for these more limiting-and unprecedented-eligibility rules. A broad coalition of plaintiffs led by Oregon Environmental Council, challenged the guidance as unlawful and arbitrary.

The decision adds to a string of defeats for the Trump administration and its wide-ranging attempts to block new wind and solar energy projects. Courts have already overturned the administration's initial "wind ban," and issued preliminary decisions overturning other policies that delay or restrict solar and wind projects. Several other anti-wind and solar policies are currently being challenged.

Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia said in her decision that the IRS's novel "begin construction" standards for wind and solar were "a significant change" from the agency's consistent practice over the past decade, and the administration's attempts at clamping down on renewable energy would mean higher bills for customers and more air pollution for communities. At stake for developers is a tax credit worth 30-50% or more of project cost.

"The natural economic consequence of the Notice is less clean electricity generation capacity and higher electricity prices," the decision says.

The case was filed in December by Oregon Environmental Council, NRDC (Natural Resources Defense Council), Public Citizen, Hopi Utilities Corporation, Woven Energy, the City and County of San Francisco, and the Maryland Office of People's Counsel.

"The Trump administration's illogical and illegal war on clean energy is making it harder to get the electricity the grid needs now more than ever, raising costs for cash-strapped utility customers," said Grace Henley, a tax attorney at NRDC. "This decision demonstrates, yet again, that its attacks are unlawful. The administration should take the hint and get to work on an energy policy that actually serves the American people.

"This is a huge win for clean energy development, and for everyone already feeling the impacts of rising electricity costs. Solar is the most affordable and fastest-growing energy source. Wind and solar energy are saving ratepayers from rising fossil fuel prices as well as combatting climate disruption. The IRS guidance that hindered these technologies was just another example of the federal administration causing energy market chaos. Saturday's decision removes that barrier. This is a win for communities, businesses, and households across the U.S.," said Jana Gastellum, executive director of Oregon Environmental Council.

"While we're disappointed with the Court's decision to dismiss our office from this case, Maryland utility customers are better off with the IRS's unlawful Notice off the books. We urge the administration to stop attacking clean energy development at a time when Marylanders can least afford it," said Maryland People's counsel David Lapp.

"This decision puts an important check on the administration's actions, which are driving up energy prices for everyday Americans in cities and towns across the country. We will continue to fight for the market fairness and predictability that allow clean energy providers to build projects that benefit us all," said San Francisco City Attorney David Chiu.

"We are pleased that our clients - and really anyone developing wind and solar assets - have the opportunity to establish meaningfully earlier 'start of construction' for tax credit purposes or possibly revive projects that did not have a pathway to 'start construction' under the IRS 2025-42 guidelines. Having flexibility in how 'start of construction' is established is important, especially for many of our Tribal clients, where land development and disturbance has heightened implications. This ruling reestablishes industry norms that are critical for project development, certainty and investment," said Woven Energy development executive Jake Schueller.

"The court's decision reinforces that the Trump administration acted unlawfully in using the IRS to target wind and solar energy projects," said Nandan Joshi, attorney with Public Citizen. "The Trump administration's war on solar and wind power results in concrete harm to consumers by raising energy prices. By using the tax code to wage war on wind and solar energy, the Trump administration will cause electric bills to rise, workers to lose their jobs, and older, dirtier power plants to spew more pollution into our air."

Background

Last year's Republican tax law cut tax credits for solar and wind and provided a transition period for projects that begin construction within a year.

For more than a decade, Congress has established that an energy project could qualify for a tax credit if it began construction on that project before certain statutory deadlines. This provided certainty to companies that their project would qualify for the tax benefits even if they faced unforeseen delays. IRS rules have long held that starting construction could mean either spending 5 percent of the total project costs or beginning physical work of a significant nature.

Saturday's decision restores the availability of the so-called "Five Percent Safe Harbor." Days after passage of the tax law, President Trump issued an executive order to "eliminate" clean energy incentives. The order specifically directed the agencies to revise the IRS's guidance on the meaning "beginning of construction" for wind and solar facilities. In rules issued in August, the IRS eliminated the 5 percent standard for all wind projects and solar projects larger than 1.5 megawatts. The lawsuit argued IRS's elimination of that option is without any legal rationale. Moreover, sources like nuclear, geothermal and hydropower did not face these new restrictions.

The case concerns an IRS notice issued on August 15 titled "Beginning of Construction Requirements for Purposes of the Termination of Clean Electricity Production Credits and Clean Electricity Investment Credits for Applicable Wind and Solar Facilities."