Currently, businesses can claim a 30% federal tax credit on commercial solar projects. Under the Senate’s latest bill, commercial solar projects that have already been planned, financed, and approved still qualify for the applicable tax credit, as long as they begin construction before June 2026 or are operational by the end of 2027. Projects may be “safe harbored” and may include materials that do not meet FEOC (Foreign Entity of Concern) requirements if construction begins by the end of 2025.
Other solar-related provisions in the Senate’s bill include:
- Residential leasing companies can receive the 30% Federal Tax Credit, or ITC (48E).
- Commercial solar projects that start construction less than 12 months after the bill’s enactment and are placed into service within four years can still claim the full ITC (48E) credit, as long as equipment meets FEOC requirements. (Equipment cannot include material from a prohibited foreign entity or Foreign Entity of Concern)
- 10% Domestic Content Adder is available:
- Equipment must be 40% US Material if installed before 6/16/2025
- Equipment must be 45% US Material if installed between 6/16/2025-12/31/2025
- Equipment must be 50% US Material if installed after 1/1/2026
- Equipment must be 55% US Material if installed after 1/1/2027
We help businesses: