WASHINGTON, D.C. — A broad array of groups with strong interests in clean and affordable energy sued the IRS and Treasury Department over new rules for tax credits that unfairly and illegally discriminate against wind and solar projects.
As part of a series of attacks on wind and solar, the IRS eliminated a key pathway for companies to demonstrate they have begun construction and thus qualify for federal tax credits before they expire on July 4, 2026. The administration unjustly and arbitrarily singled out solar and wind projects for these more restrictive — and unprecedented — eligibility rules.
The IRS guidance “unlawfully changes the tests for beginning of construction for only solar and wind facilities, without providing adequate reasons or data for treating those facilities differently from all other industries,” the filing says. This change is “likely to increase power prices, resulting in higher electric rates and bills for consumers.”
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OREGON ENVIRONMENTAL COUNCIL v. INTERNAL REVENUE SERVICE (1:25-cv-04400)
Complaint (37-page PDF)
COMPLAINT against SCOTT BESSENT, DEPARTMENT OF THE TREASURY, INTERNAL REVENUE SERVICE filed by PUBLIC CITIZEN, Maryland Office of People’s Counsel, NATURAL RESOURCES DEFENSE COUNCIL, INC., Hopi Utilities Corporation, OREGON ENVIRONMENTAL COUNCIL, Woven Energy. (Attachments: # 1 Civil Cover Sheet Civil Cover Sheet, # 2 Summons Pam Bondi, Attorney General of the United States, # 3 Summons U.S. Attorney’s Office for D.C., # 4 Summons IRS, # 5 Summons Department of the Treasury, # 6 Summons Scott Bessent, in his official capacity)(Zimpleman, Thomas) (Attachment 1 replaced on 12/19/2025) (zjm). (Entered: 12/18/2025)
Specific rules that govern how wind and solar developers qualify for these credits (20-page PDF)
Oregon environmental group leads lawsuit to reverse IRS wind, solar rules
