The Solar Tax Credit Is Being Phased Out: Here’s What You Need to Know
July 7, 2025
The Solar Tax Credit Is Being Phased Out: Here’s What You Need to Know
With the recent passing of the “Big Beautiful Bill,” the solar 30% Federal Investment Tax Credit (ITC) is officially being phased out, but there’s still time to lock it in if you act quickly.
3 Ways to Secure the 30% ITC Before It’s Gone
1. Start Now and Begin Construction Within 12 Months
The 12-month countdown from enactment has begun for 45Y/48E. Projects that start construction within the next year can still qualify for the full 30% ITC under the “start of construction” rule.
2. Placed in service by December 31, 2027
Even if you don’t break ground within 12 months, any project placed in service by December 31, 2027 is still eligible.
3. Safe Harbor
The Department of Treasury may issue “safe harbor” rules allowing you to spend funds early on your project and lock in the ITC. This is a riskier option, because it is unknown when these rules will come into effect.
Why Act Now?
Delays could mean missing out on the ITC entirely.
The typical timeline from contract signing to solar project completion is 18 months:
Contract → Design → Permitting → Construction → Permission to Operate → Placed in Service
Free Portfolio Analysis: Are Your Projects ITC-Protected?
We’ll help you:
- Portfolio feasibility review to identify which properties have the strongest IRR
- Federal ITC project modeling across your portfolio
- Clear “construction-ready” project plan to secure ITC before deadlines
- Step-by-step guidance to maximize savings before the window closes
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