Post by Mary Lundstedt, Esq.

📰 Plot twist for clean energy #taxplanning! A federal court just spanked the IRS (ripping Notice 2025-42), resurrected the long-relied-on 5% safe harbor for many wind and large-scale solar projects, and rejected the IRS’s attempt to force everyone into the physical work test only. 👏 The court found the IRS’s abrupt policy shift ignored a decade of precedent and massive reliance interests, flunking 𝘚𝘵𝘢𝘵𝘦 𝘍𝘢𝘳𝘮’𝘴 “reasoned explanation” standard and triggering 🍿 𝘷𝘢𝘤𝘢𝘵𝘶𝘳 𝘶𝘯𝘥𝘦𝘳 𝘵𝘩𝘦 𝘈𝘗𝘈. 🍿 Per Court: "Taken together, these factors lead the Court to conclude that the Notice's cursory explanation is insufficient to show the "path" that led the IRS to eliminate the Five Percent Safe Harbor for wind and large-scale solar projects, while leaving the Safe Harbor in place for other clean energy projects." (I'm giddy . . .). Developers, utilities, tribes, and advocates . . . you may want to rethink which projects can still qualify under the shortened Section 45Y/48E timelines and how you structure “beginning of construction” going forward. Oregon Environmental Council v. Internal Revenue Service, No. 25-4400 (D.D.C. June 6, 2026) #section48E #taxcredits #APA #solar Ashlee Hall Hall Lundstedt, LLC Taxplaining🎙️