For renewable energy developers, project owners, and investors, the timing of an Investment Tax Credit (ITC) strategy has shifted from “optimizing returns” to “project survival.” Under new federal mandates, the 30% base ITC is no longer a guaranteed fixture for the next decade.
Recent legislative changes have accelerated the expiration of these credits. If a project does not “Begin Construction” by July 4, 2026, or meet strict “Placed in Service” deadlines by the end of 2027, the tax credit drops to 0%. We are no longer just talking about losing a 10% bonus; we are talking about losing the entire federal subsidy.
As a result, many developers are utilizing IRS-recognized safe harbor strategies to lock in ITC eligibility ahead of the deadline. By safe harboring qualifying project components, developers can preserve the ITC even if construction continues after July, provided the project meets applicable size and qualification requirements.
The Window of Opportunity is Closing
To secure the 30% ITC and the additional 10% Domestic Content Bonus projects must satisfy IRS “Beginning Construction” requirements before the July cutoff.
Missing this window means:
Total Loss of ITC: The base 30% credit vanishes for projects started after the deadline.
Stranded Assets: Projects modeled on 30–40% tax equity may no longer be financially viable unless alternative incentives or sufficiently high kWh rates are available to offset the loss of federal credits.
Compressed Timelines: Projects starting after July 4 must be fully operational by December 31, 2027, to claim any credit at all, leaving zero margin for permitting or interconnection delays.
How AccuSolar Can Lock In Your Project
Navigating these deadlines requires more than just intent; it requires physical and financial action. AccuSolar is uniquely positioned to help developers “Safe Harbor” their projects now.
By partnering with AccuSolar, you can utilize the 5% Safe Harbor Test or the Physical Work Test by procuring specialized floating solar racking and anchoring systems. We provide the project-specific documentation, binding contracts, and inventory allocation required by the IRS to prove your project has officially “begun” before the July 4 deadline.
Floating Solar Requires Immediate Action — Strategic Action Plan
To preserve the 30% ITC and the 10% Domestic Content Bonus, we recommend taking these steps as soon as possible:
- Secure Procurement: Execute binding agreements with AccuSolar to satisfy safe harbor expenditures.
- Document Everything: Maintain rigorous logs of “Physical Work” or “Significant Expenditures” initiated before July.
- Verify Sourcing: Ensure your supply chain meets the 2026 domestic content thresholds to stack that extra 10% on top of your 30% base.
The Bottom Line
If you haven’t started construction by July 4, your project economics will change overnight. Hence, it makes sense to take action now to confirm domestic content, initiate procurement, and document early construction activity can preserve millions of dollars in federal incentives and strengthen your project’s financial profile. Contact us to ensure your renewable energy project is positioned to capture the maximum value of the ITC and domestic content bonus.
