Solar container tax credit

Can a business claim a 30% tax credit on solar?

For years, eligible businesses have been able to claim a 30% federal tax credit on qualified solar investments—including both commercial rooftop solar and ground-mounted systems—dramatically reducing upfront costs and improving project ROI.

Does your company qualify for a solar investment tax credit?

A major change is coming for commercial solar projects — and it could determine whether your company qualifies for the federal 30% Investment Tax Credit (ITC) for solar or loses it entirely. Starting January 1, 2026, new Foreign Entity of Concern (FEOC) rules take effect.

Does a solar project qualify for a 30 percent tax credit?

Yes— if it is placed in service by December 31, 2027, your project will still qualify for the 30% commercial solar tax credit, even if construction hasn’t started by July 4, 2026. However, to protect against delays, commercial solar companies are recommending safe harbor strategies to lock in eligibility well in advance.

Can a nonprofit benefit from the commercial solar tax credit?

Yes. Tax-exempt entities such as schools, municipalities, and nonprofits can continue to benefit from the commercial solar tax credit using the direct pay option under Section 6417.

How do I claim the residential energy credit?

To claim the residential energy credit, file Form 5695 with your tax return. You must claim the credit for the tax year when the property is installed, not merely purchased. For detailed instructions, follow our step-by-step guide.

When do commercial solar systems qualify for a 30% credit?

That means storage-only or hybrid systems must either begin construction by July 4, 2026 or be in service by December 31, 2027 to qualify for the 30% credit. The depreciation landscape for commercial solar systems has undergone a meaningful shift.