Treasury Department Guidance Restricting Green Credits Struck Down by Judge

The lawsuit argued that the rule change ⁠would make electricity more expensive and stop renewable energy projects from being ​built.

A drone view shows solar panels as they stand on sandy soil located on Dave Duttlinger's farmland that he leased to Dunns Bridge Solar LLC in Wheatfield, Ind., on April 5, 2024. Jim Vondruska/Reuters

A U.S. judge has struck down a Trump administration ‌policy implemented last year that made it harder for wind and solar energy projects to claim federal tax ‌subsidies.

In a ruling on Saturday, Judge Colleen Kollar-Kotelly of the U.S. District Court for the District ⁠of Columbia said the Treasury Department’s IRS had failed to give an adequate reason for eliminating a longstanding definition for what it means for a project to be considered under construction.