A new federal law has impacted the tax credit structure for commercial solar, setting a hard cutoff for the Investment Tax Credit (ITC) eligibility. Unlike past phase-downs, there is no gradual reduction—projects that miss these deadlines receive 0% credit.
If you’re planning to build a floating solar project, you can still lock in the full 30% federal tax credit, but only if your project meets both of the following conditions:
- Begin construction by July 4, 2026.
- Place the system in service by December 31, 2027.
Projects that miss either of these deadlines will no longer qualify for the federal ITC under current law.
If you’re planning to build a floating solar project in 2025 or 2026, you can still preserve ITC eligibility by meeting “Safe Harbor” criteria.
The IRS Safe Harbor provision allows you to lock in the full 30% ITC if you:
- Spend at least 5% of your project’s total cost on qualified project-specific expenses before July 4, 2026.
- Place a deposit or start production on essential components (such as floats or frames). Per the guidelines, deposits must be non-refundable, and components must be uniquely assigned to a project. AccuSolar will take necessary precautions to begin production with proper documentation.
- Maintain clear documentation tying costs, contracts, and components to your specific project.
Lock In Your Solar Savings Now!
At AccuSolar, we specialize in helping commercial and public-sector partners take the right steps to preserve these incentives—without rushing a full build. We’re already helping partners safeguard their ITC eligibility by:
- Execute project-specific purchase agreement.
- Start production of core components (floats, frames).
- Issue timestamped invoices tied to project IDs.
We’ll help you:
- Place the right deposit.
- Confirm IRS eligibility.
- Ensure your paperwork meets Safe Harbor compliance.
- Calculate your 5% threshold.
- Verify full alignment with the latest federal deadlines.
Safe Harbor only works if the paperwork and production are in motion before the federal cutoff date. Floating solar projects that wait may lose access to the full 30% credit—and there is no fallback credit after the deadline.
These savings can be the difference between budgeted and built. Let’s make sure your project doesn’t miss out.
Need help understanding the process or protecting your project economics? Our team can walk you through the process and help you secure these vital tax credits. Contact us for more information!
