SOLAR TAX CREDITS PHASING OUT

On July 4th, 2025 President Trump signed the One Big Beautiful Bill into law accelerating the phasing out of solar tax credits for both homeowners (25D), and commercial property owners (48E).  If you have not installed solar panels on your home or commercial property NOW is the time to do so!  Under the new law U.S. homeowners have until December 31st, 2025 to place their solar system in service in order to claim a 30% Federal tax credit for their 2025 taxes and corporations and other commercial property owners have roughly eleven months to “commence construction” on their commercial solar project (meaning 5% of the capital cost of the project must be paid and work must have started on the project – this could be as simple as a draft of engineering plans being completed).  Fortunately, for commercial asset owners, many of the beneficial provisions of the Inflation Reduction Act were not touched by this law so commercial property owners may be eligible for up to a 50% Federal tax credit if the property is in an Energy Community and built with Domestic Content: https://www.beachcitiessolarconsulting.com/new-commercial-solar-tax-incentives/

The One Big Beautiful Bill also brought back accelerated depreciation from the tax cuts and jobs act of 2017 (meaning assets purchased for business use, in this case solar systems, may be 100% depreciated in year one instead of over a longer time frame).  When factoring in this new accelerated depreciation and the potential of a 50% Federal tax credit, the time has never been riper than now for commercial property owners to install solar and save!

As we saw in California with the NEM 2.0 deadline two years ago cities, utilities, and solar installers are going to see a massive spike in inquiries and new projects and are sure to be overwhelmed by this rush, so it is best to get your ducks in a row and reach out to us today with your electrical bills and other relevant information to commence your solar project ASAP.