Tax Credits

2025 Legislative Changes Affecting Commercial Solar Projects

The One Big Beautiful Bill Act was signed into law on July 4^th, 2025 effectively phasing out tax incentives for photovoltaic solar systems.

Projects that have 5% down payment by July 4^th, 2026, retain safe harbor and are given 4 years to complete
Projects that receive 5% down payment after July 4^th, 2026, need to be completed by December 31^st, 2027 to qualify for the 30% federal tax credit

ACTIONS TO TAKE

Get an updated quote
Get a purchase agreement signed early 2026
Make a downpayment of at least 5% by June 2026
Get your project on the construction schedule
(Projects that fulfill these steps will have up to 4 years to complete the project construction and still receive the 30% federal tax credit)

PREPARING FOR START OF CONSTRUCTION

Weeks

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Engineering and Design work
3+ weeks

Interconnection Paperwork
4 weeks

State Release Paperwork
4 weeks (where applicable)

Permitting
2 weeks

Ordering initial materials
10 weeks

SUMMARY

Projects under 1.5 MW AC must have contract signed and a 5% down payment prior to July 4^th, 2026.
Renewable Energy Systems can only schedule 10-12 commerical projects a year
Typically projects require 17 weeks from contract to start of physical construction

Schedule and capacity is based on a first come first serve bases. Earlier quotes provide a greater safe harbor opportunity.

Nonprofit Organizations

Nonprofits also benefit from safe harbor by meeting the above requirements. Instead of recieving the 30% Federal tax credit nonprofits are eligible for direct pay.

FEEL THE POWER. MAKE YOUR MOVE.

Being in business since 2008, we have been the pioneers in our industry for Indiana and surrounding areas. With that in mind, we have faced all challenges, old and new. We have also gained the experience to guide our customers in making the best decisions for their energy investment.

One way that we provide extra value is by providing industry and product insight, along with a free site assessment to those interested in installing a solar energy system. Call us today to make an appointment.

Our company is on a mission to empower our customers by giving them control of their electricity production and usage.

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