The 30% Federal Investment Tax Credit (ITC) for residential solar is ending at the end of 2025. States offer different incentives such as net metering or Renewable Energy Credits, as well as sales tax waivers or property tax credits.
For commercial solar projects, the federal Investment Tax Credit (ITC) remains in place with limitations. If construction is started before July 4, 2026, a project can lock in the full ITC and qualify for a four-year “continuity safe harbor” to be placed in service. If it is started a after that date, it must be complete by the end of 2027.
Along with the ITC, installing solar brings other advantages, such as the 5-Year Modified Accelerated Cost Recovery System (MACRS). These incentives have played a crucial role in cost reduction for companies making the switch to solar energy. Moreover, businesses can take advantage of a range of rebates and incentives offered at the state, municipal, and utility levels, further facilitating the adoption of renewable energy. To explore the specific incentives available in their area, businesses can refer to the Database of State Incentives for Renewables & Energy, which serves as a valuable resource.
Your Sun Energy Today Advisor will help you capitalize on all of the available credits and incentives.
