The Financial War Room

Tax incentives that make commercial solar a strategic business decision

Stack Your Incentives

The OBBBA created the most favorable commercial solar environment in American history

30%

Federal Investment Tax Credit (ITC)

Dollar-for-Dollar Tax Reduction

The ITC provides a direct credit against your federal tax liability equal to 30% of your solar system cost. This isn't a deduction—it's a dollar-for-dollar reduction of taxes owed.

Requirements

  • Construction must begin before July 5, 2026
  • System must be completed within 4 years of construction start
  • Property must be placed in service by the taxpayer
Example: $1,000,000 system = $300,000 direct tax credit
+10%

Domestic Content Bonus

American Steel. American Jobs. American Bonus.

Projects using 100% domestically manufactured steel, iron, and components qualify for an additional 10% bonus, bringing your total ITC to 40%.

Zero-FEOC Supply Chain

  • No components from Foreign Entities of Concern (FEOC)
  • American-manufactured solar panels and racking
  • Documentation of domestic sourcing required
Example: $1,000,000 system with domestic content = $400,000 tax credit
100%

Year-One Bonus Depreciation

MACRS Accelerated Write-Off

The OBBBA reinstated 100% first-year bonus depreciation under the Modified Accelerated Cost Recovery System (MACRS). This allows you to deduct a substantial portion of your solar investment in the year of purchase.

The 85% Basis Rule

  • Depreciable basis is reduced by half the ITC amount
  • For 30% ITC: depreciate 85% of system cost (100% - 15%)
  • For 40% ITC (with domestic bonus): depreciate 80% of system cost
Example: $1,000,000 system × 85% × 21% tax rate = $178,500 tax savings

Combined Incentive Value

When you stack these incentives, the numbers speak for themselves

Standard ITC
System Cost $1,000,000
30% ITC -$300,000
Depreciation Savings -$178,500
Total Incentives $478,500
% of Cost Covered ~47%
With Domestic Bonus
System Cost $1,000,000
40% ITC -$400,000
Depreciation Savings -$168,000
Total Incentives $568,000
% of Cost Covered ~57%

Critical Dates

Mark your calendar—these deadlines determine your incentive eligibility

JAN 19 2025

Bonus Depreciation Reinstated

100% first-year bonus depreciation became effective for qualified property purchases.

JUL 4 2026

Construction Must Begin

Last day to begin construction and qualify for the full 30% ITC. After this, incentives begin phasing down.

TAX YR 2029

Bonus Depreciation Window

100% bonus depreciation available through the 2029 tax year under current OBBBA provisions.

Get Your Custom Incentive Analysis

Every business situation is different. Let us calculate your specific tax savings based on your project size, tax situation, and domestic content options.

Calculate My Savings (888) 555-0199