According to the July federal budget bill:
- Commercial SOLAR and WIND projects must EITHER 1) commence construction by July 4, 2026, OR 2) be placed in service by the end of 2027. This is a tight timeline, and unworkable for many utility scale projects if not already far along in planning, but for locally-owned solar, there is essentially a year to plan for "safe harbor," or two years (2026 and 2027) to get systems built.
- BATTERY STORAGE, GEOTHERMAL, HYDRO POWER, and NUCLEAR generation projects all retail full credit through 2033. At that time, tax credits for nuclear power end, while the others phase out.
- Foreign Entity of Concern (FEOC) rules, which disqualify projects containing components, such as solar panels, that are manufactured in foreign countries of (federal) concern, may make the remaining tax credits difficult to earn. NOTE, however, some of these rules take effect for projects that commence construction after 2025, so safe harbor contracts may still be achievable during this calendar year.
See our FACT SHEET for FARMS & BUSINESSES for why farms and businesses should consider going solar now, with or without the tax credits!
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