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Oregon AG Coalition Challenges IRS Rule on Clean Energy Tax Credits

Internal Revenue ServiceFebruary 20, 2026Oregon Attorney General

Summary

Environmental and consumer protection enforcement action. Oregon Attorney General Dan Rayfield led a coalition of 16 states in filing an amicus brief supporting a lawsuit against the IRS. The challenge contests a new IRS rule that removes a key pathway (5% investment test) for wind and solar projects to qualify for federal clean energy tax credits. The states argue the rule is unlawful, arbitrary, will increase energy costs for families and businesses, and undermine state clean energy goals and investments.

Remedy

The states are asking the U.S. District Court for the District of Columbia to strike down the new IRS rule and restore the previous, decade-old standards that allowed projects to qualify for tax credits by either starting construction or investing at least 5% of project costs.

Injunction

Violation Types

Entity Details

Entity

Internal Revenue Service

Also known as: IRS

Industry

Other

Multistate Coalition

Official Sources

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