The Treasury Department reportedly tightened the rules Friday for renewable projects that can qualify for federal tax credits.
Renewable projects have historically been able to qualify for federal clean energy tax credits once a developer spent 5 percent of a project’s cost. But that threshold would be scrapped under new Treasury guidance, according to Bloomberg News.
The order comes after President Donald Trump ordered Treasury in July to tighten the definition for the start of construction, in an attempt to limit “market distorting subsidies for unreliable, foreign controlled energy sources.”
Under the new rules, developers would need to prove they had embarked on significant construction activities to qualify for the credits.
