July 4th Deadline Approaching

Don’t miss the July 4, 2026 deadline to secure valuable federal solar tax credits. Whether you’re a commercial property owner or a nonprofit exploring direct pay benefits, timing is critical and delays could mean losing out on significant savings. Contact Palomar Solar & Roofing today to evaluate your project, lock in eligibility, and take the right steps before the window closes.

Key Deadlines to Know:

• July 4, 2026 – Deadline to begin construction and secure eligibility for the full federal tax credits
• December 31, 2027 – Final deadline to place your system in service if construction hasn’t started by July 2026
• Within 4 years of construction start – Project must be completed to maintain safe harbor eligibility
• Ongoing – Bonus credit qualifications (domestic content, labor compliance, etc.) must be met during project execution

Tax Credit Value (If You Meet the July 4, 2026 Deadline):

• 30% Base Investment Tax Credit (ITC)
• +10% Domestic Content Adder
• +10% Energy Community Adder
• +10–20% Low-Income Adder (ITC only, if eligible)

Total potential ITC: 40% – 50%+ of project cost

Example – $1,000,000 Solar System:

• Base ITC (30%) → $300,000 tax credit
• With 10% bonus → $400,000 total credit
• With multiple adders (up to 50%) → $500,000+ total tax credit

Safe Harbor Requirements (to lock in eligibility):

• 5% Cost Rule – Incur at least 5% of total project costs on qualifying equipment or services
• Physical Work Test – Begin “significant” on-site or off-site construction (not just site prep like fencing or grading)
• 3.5-Month Rule – Equipment/services paid for must be delivered within 3.5 months (or meet IRS exceptions)
• Continuous Progress Rule – Maintain steady progress toward completion (automatically satisfied if finished within 4 years)

The sooner you act, the more options—and incentives—you’ll have on the table.