There’s been a lot of talk lately about changes to the commercial solar tax credit under the “Big Beautiful Bill”, and we wanted to break it down for you. The good news is the 30% federal Investment Tax Credit (ITC) is still available for commercial solar projects. But there are some important updates to timing and requirements that businesses should know before moving forward.
At Gordian, we’re keeping track of all the changes so you don’t have to. Whether you’re already planning a project or just starting to explore your options, we’re here to help you take full advantage of what’s still available.
Here’s a quick summary of what’s new:
30% Solar Tax Credit Still Available Through 2028
The ITC is staying at 30% through 2028, which is a big win for businesses investing in solar. To qualify for the full credit, your project either needs to start construction within 12 months of the bill being signed, or be placed in service by December 31, 2027.
If you’ve been considering a project, this is your reminder that now is the time to get things moving. We’re happy to talk through your timeline and see how you can qualify.
New Rules Around Foreign Materials
One of the bigger changes is a new rule called FEOC, which stands for Foreign Entity of Concern. In short, it limits the use of certain materials and equipment from specific foreign sources. Starting in 2026, projects will need to meet growing domestic content requirements in order to qualify for the credit.
We’re staying ahead of this and working with trusted suppliers so you don’t have to worry about whether your project will qualify. We’ll make sure you’re covered.
You Can Still Transfer Your Tax Credit
Tax credit transferability is still allowed, which gives you some flexibility in how your credits are used. The only catch is that you can’t transfer them to certain foreign entities. If this is something you’re exploring, we’ll walk you through what’s allowed and what’s not.
EV Charging Incentives Are Still Available for Now
If your business is looking to install EV chargers for your fleet, employees, or customers, there’s still time to take advantage of the credit. But not a lot of time. The EV charging tax credit will expire on June 30, 2026.
Bonus Depreciation
Effective Date: Applies to property acquired and placed in service after January 19, 2025.
Eligible Property: Includes solar energy systems and other assets with a useful life of 20 years or less.
Impact: Businesses can fully deduct the cost of solar installations in the first year, rather than depreciating them over five years (as under MACRS with bonus depreciation under the IRA).
Additional Deduction: There’s also an extra first-year depreciation deduction available for certain manufacturing, production, and refining property- need more clarity
Energy Storage Projects Still Qualify
Standalone battery storage still qualifies for the full tax credit, and there’s no new placed-in-service deadline to worry about. It’s a great option for businesses looking to improve their energy resilience or manage demand more efficiently.
Bonus Credits for Domestic Content and Energy Communities
In addition to the 30% base ITC, your project might qualify for bonus credits of 10% or more if it meets certain conditions, including:
Domestic Content Bonus: If your project uses a specified percentage of U.S.-made steel, iron, and manufactured products, you could qualify for an additional 10% credit.
Energy Community Bonus: If your project is located in a designated “energy community” (e.g., a former coal or brownfield site, or an area with high fossil fuel job losses), you could also receive an additional 10%.
Maryland does have potential eligible areas, and our team can check for you.
Safe Harbor Provision (5% Rule)
To qualify under current credit rules without full construction, businesses can “safe harbor” their project by spending at least 5% of total costs (typically on materials or equipment) within the deadline window. This can protect your project’s tax credit eligibility even if full construction starts later. This provision is currently awaiting interpretation for further clarity and direction.
Let’s Make a Plan!
There’s a lot changing, but we’re staying focused on what matters most, helping you make smart energy decisions that work for your business. If you’ve got questions or want to see if your project still qualifies, we’re here and ready to help.
Send us a message and let’s get started.
📩 info@gordiane.com