Understanding the Recent Push for Utility-Scale Solar Projects
By Martin McConnell
February 26, 2026
In a bold move, Nevada Senator Catherine Cortez Masto, alongside Senate Minority Leader Chuck Schumer and Senate Finance Committee Ranking Member Ron Wyden, has introduced a crucial resolution aimed at reversing a recent IRS ruling affecting utility-scale solar projects.
What is the Resolution?
This resolution, known as S.J.RES. 107, aims to reverse the federal government’s decision from August 2025 that disqualified utility-scale projects (those exceeding 1.5 MW) from benefiting from the 5% safe harbor rule of the Investment Tax Credit (ITC). This ruling highlighted a specific “physical work test,” stipulating that utility-scale projects need to have installed racks at a site before July 4, 2026, to maintain ITC eligibility.
The State of Solar Energy in Nevada
Nevada ranks sixth in the Solar State By State rankings by the Solar Energy Industries Association (SEIA), showcasing its potential in renewable energy. Senator Cortez Masto has repeatedly voiced her commitment to championing renewable energy development in her home state. Earlier this year, her Help Hoover Dam Act, which focuses on hydroelectric power projects, made significant strides through the Senate, further solidifying her stance as a renewable energy advocate.
The Stakes
Cortez Masto has described the IRS ruling as “nothing but a blatant attempt to disqualify projects needed to build out our nation’s clean energy infrastructure.” She emphasized the importance of planning and investment for wind and solar firms, asserting that the ruling could lead to rising energy costs and deter investment in renewable energy initiatives.
Cortez Masto stated, “For years now, wind and solar companies have been planning their investments into our nation’s energy grid. This ruling will raise energy prices and chill investment, and Congress must step in.”
Criticism of the Ruling
Critics argue the ruling is not just a procedural shift, but a tactic to hinder the growth of renewable energy projects nationwide. Senator Schumer echoed similar sentiments, asserting that the IRS decision complicates renewable energy construction and restricts the capacity to meet rising electricity demands.
He criticized the previous administration, pointing out, “Trump promised he would cut energy costs in half. Instead, he has driven prices even higher by hiking taxes on clean energy projects as a handout to his Big Oil buddies.” Schumer called for increased energy supply to lower costs rather than creating barriers to clean energy projects.
Proponents of Renewable Energy
Senator Ron Wyden has long championed America’s renewable energy agenda, serving as chair of the Senate Energy Committee and advocating for policies that encourage non-fossil fuel energy sources. He underscored the urgency of the joint resolution, emphasizing that it could mitigate the damage caused by the Republican tax law on clean energy initiatives.
Wyden remarked, “We’re giving the Republicans an opportunity to undo some of the damage they caused in their budget, save a lot of jobs, and get more energy on the grid to bring down prices. If they oppose it, we’ll be a weaker and poorer country as we fall further behind on clean energy.”
Legislative Process
As of February 12, 2026, S.J.RES. 107 has been read twice and referred to the Senate’s Committee on Finance, positioning it for further discussion and debate.
Tags:
Congress | ITC | policy | safe harbor | Trump administration | utility | utility-scale