July 4th could be the start of your Independence Day — independence from rising fossil fuel costs as you initiate the switch to solar energy! This is because a special July 4th deadline was created to encourage speedy completion of commercial and non-profit solar projects under the One Big Beautiful Bill Act (OBBBA). Solar industry experts recommend that all commercial — and non-profit entities eligible for the ‘direct pay’ ITC option — intending to go solar act as quickly as possible.
To sum up, although under the OBBA the 30% federal residential solar tax credit was ended, but the federal commercial solar Investment Tax Credit (ITC)’s demise was postponed since these projects tend to be larger and take longer to complete.
Here are the details:
- If you begin construction on your project on or before July 4, 2026, you can safe harbor the Investment Tax Credit (ITC) for 4+ years. That means it must be fully operational by July 4, 2031.
- If you wait to begin construction after July 4, 2026, your project must be operational by December 31, 2027.That only gives you about 1 1/2 years.
The reason solar industry experts recommend acting as quickly as possible is because the impending deadlines are expected to create increased red tape delays in the building permit process, supply chain issues and equipment shortages, all of which are completely out of anyone’s hands to address, and could ultimately cause ineligibility for the tax credit, worst case.
Act now. Ask us for a free solar proposal today!