Office of the
Illinois Attorney General
Kwame Raoul

Chicago – Attorney General Kwame Raoul joined a coalition of 14 attorneys general supporting a lawsuit challenging a new Internal Revenue Service (IRS) notice that makes it harder for wind and solar energy projects to qualify for long-standing federal tax credits. Raoul and the coalition argue in an amicus brief that the change will undermine investments in clean energy, slow economic growth, and increase costs for families and businesses.  

“This is yet another burden imposed by the administration that financially harms residents in Illinois and across the nation while also jeopardizing our environment,” Raoul said. “I will continue to partner with my fellow colleagues to protect our communities and environment from this administration’s unlawful actions.” 

For years, energy developers could qualify for these tax credits by either starting significant physical construction or by investing at least 5% of a project’s total cost. The new IRS notice removes the 5% option for most wind projects and larger solar facilities, while leaving other energy industries untouched. 

Raoul and the coalition argue that the notice is unlawful, arbitrary and harmful to consumers. At a time when electricity demand is rising rapidly due to data centers, artificial intelligence, advanced manufacturing and population growth, limiting new energy projects risks tightening supply. The amicus brief explains that when supply tightens while demand increases, prices go up and families and businesses pay the price through higher utility bills. 

Federal clean energy tax credits were created to encourage investment in new electricity generation and help lower long-term costs for consumers. Prior federal estimates projected that these credits would bring hundreds of gigawatts of new electricity generation online, reduce electric costs for consumers by billions of dollars annually, and cut air pollution and greenhouse gas emissions. 

Raoul and the attorneys general argue the agency failed to provide adequate justification for the change and did not properly consider the impact on state energy planning, consumer costs and projects already underway. In the amicus, they are asking the court to strike down the notice and restore the previous standards that had been in place for more than a decade. The federal clean energy tax credits are set to expire July 4, 2026. 

The underlying lawsuit was filed in the U.S. District Court for the District of Columbia by a coalition of clean energy and consumer groups, including the Oregon Environmental Council, NRDC (Natural Resources Defense Council), Public Citizen, Hopi Utilities Corporation, Woven Energy, the city and county of San Francisco, and the Maryland Office of People’s Counsel. 

Joining Raoul in filing the amicus brief are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Maine, Michigan, Minnesota, New Mexico, New Jersey, Oregon, Rhode Island and Washington.