Trump Orders Stricter Enforcement of Clean Energy Tax Rules

New executive measures tighten regulations for wind and solar tax incentives.

US President Donald Trump has announced new executive steps to strengthen regulations around clean energy tax credits, including wind and solar schemes. The action follows Trump's $3.4 trillion budget bill, which was signed recently, which cut government subsidies for green energy programs and prompted fresh demands for tighter controls.

Under the new executive order signed on Monday, the US Treasury Department has been directed to more strictly define when a renewable energy project qualifies as having "started construction" to be eligible for tax credits. The revision is especially aimed at limiting the capacity of developers to secure tax incentives by carrying out minimal construction work. Under the pending tax-and-spending bill, renewable energy facilities are eligible for tax credits if they have started building within 12 months. Fiscal conservatives, however, especially members of the US House Freedom Caucus, raised concerns about such incentives and demanded more checks to prevent green energy subsidies.

The new regulations are regarded as a result of the calls for such measures, and also follow reports indicating that Trump's administration reached an agreement with the Freedom Caucus on implementing tighter measures in return for their backing on the budget deal. The executive order also directs that the US Department of the Interior roll back rules that have historically provided special treatment to wind and solar energy plants.

In addition, the order places further limits on foreign-controlled projects with connections to entities of concern, particularly China. These actions reflect a more conservative stance towards clean energy tax credits under the Trump administration, consistent with overall efforts to cut government expenditure and enhance energy independence.