Tax policy for shared solar container power station projects

When does a solar project qualify for a tax credit?

Solar projects must be placed in service by the end of 2027 to qualify for the tax credit, with an exception for projects that start construction by July 4, 2026, enabling those projects to be placed in service within 4 years. This is why many companies have already safe harbored projects via purchasing transformers or solar modules.

Are solar projects eligible for ITC?

Note that the ITC eligibility continues to be based on the “start of construction” date. Solar projects that start construction within 12 months of the OBBB are eligible for the full 30% ITC (plus any bonuses); these projects generally have a 4-year window to enter into commercial operation.

Are construction projects taxable after obbb?

Further, projects that start construction in 2026 (with the 18% tax credit) have significant benefits as well as those that start in 2027. Post OBBB, projects still maintain a ~23% tax benefit (about half of what those benefits would have been under the IRA).

How does the obbb affect solar projects?

Additionally, the OBBB provides for energy projects to be depreciated in a 1-year timeline vs. the 5-years MACRS schedule (plus bonus) under the IRA and earlier legislation. This whitepaper explores the financial implications of the ITC and the depreciation impacts on solar projects.

Are solar projects eligible for obbb?

Solar projects that start construction within 12 months of the OBBB are eligible for the full 30% ITC (plus any bonuses); these projects generally have a 4-year window to enter into commercial operation. Solar projects that do not begin construction within 12 months of the OBBB are subject to a step down based on start of construction.

How has the solar and storage market changed in 2025?

The solar and storage market has undergone multiple seismic shifts throughout 2025, from the introduction of IEEPA tariffs to new AD/CVD and Section 232 cases.