E+E Leader Team

Federal guidance issued in late 2025 has reshaped how developers and commercial energy buyers must approach the solar Investment Tax Credit (ITC). Following passage of the One Big Beautiful Bill Act, the U.S. Department of the Treasury and the IRS clarified what qualifies as “beginning construction” — and narrowed several long-standing pathways that projects previously relied upon.

At the center of the change is a firm timeline. Projects generally must be placed in service by December 31, 2027 to qualify for the credit. An important exception exists for projects that begin construction on or before July 4, 2026, provided they meet ongoing continuity requirements. That July deadline now represents a pivotal milestone for organizations planning multi-year solar deployments.

The guidance significantly narrows the 5% safe harbor pathway. For most larger projects, simply incurring a portion of project costs will no longer secure eligibility. Demonstrating qualifying construction activity now carries greater weight — and tighter documentation standards.

At the same time, new foreign entity restrictions beginning in 2026 introduce additional screening requirements around ownership, sourcing, financing, and technology relationships.

Together, these changes compress timelines and raise the execution bar. Organizations evaluating commercial solar now face narrower pathways to preserve credit value.

To help energy and facilities leaders understand what must happen — and when — Environment+Energy Leader will host a live webinar with VECKTA:

Secure Solar Tax Credits Before July Deadline: An Action Plan
February 25, 2026 | 3:00 PM ET

The session will outline:

The precise milestones required to preserve the 30%–50% ITC
What qualifies for safe harbor under current rules
How procurement timelines can be compressed from traditional cycles to meet the July 2026 threshold
Practical strategies to avoid common project bottlenecks

For companies evaluating solar in 2026 and beyond, the planning window is narrowing. This discussion will provide clarity on how to structure projects to protect eligibility and maximize economic value.

Register now to ensure your project timeline aligns with the new federal requirements.