There’s Still Time to Lock in the Federal Solar Tax Credit

The One Big Beautiful Bill, signed into law on July 4, begins the phase-out of the Federal Investment Tax Credit (ITC) for solar and wind energy. While the 30% ITC is being eliminated, there’s still time to secure this important incentive for solar projects. How?

“Safe Harbor” is a provision within the ITC that allows projects to lock in the credit for a given year by demonstrating that construction has “begun.” Solar projects that begin construction within 12 months of the law’s enactment are eligible for the full 30% ITC, with no placed-in-service deadline. Projects that begin construction after that 12-month window must be placed in service by the end of 2027 to qualify.

This creates a limited but valuable opportunity to combine the ITC with NY-Sun incentives. Businesses can take advantage through direct ownership, a Power Purchase Agreement (PPA), or a roof (or land) lease agreement.

Solar remains a strong investment—especially as electricity rates continue to rise. Now is the time to act to maximize financial returns before the 30% ITC is phased out.

For more information, contact George Ford at gford@solect.com or 914-200-8457.
George is Senior Director of Business Development at Solect Energy.

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