If you’re considering solar energy — whether for your business, non-profit, or investment property — one of the biggest questions on everyone’s mind is:
👉 “Can I still claim the solar tax credit in 2026?”
The short answer is yes — businesses and certain projects can still claim the federal solar tax credit in 2026, but eligibility, deadlines, and compliance rules have changed. Understanding them now can make a major difference in your potential savings.
In this guide, we’ll walk through who qualifies, what systems are eligible, and how to make sure you get the full benefit in 2026.
What Is the Solar Tax Credit?
The Federal Solar Investment Tax Credit (ITC) allows property owners to deduct a portion of their solar installation cost from their federal taxes.
Originally launched as a 30% credit, the ITC has been extended and enhanced under the Inflation Reduction Act — particularly for commercial and institutional projects.
Can You Claim the Solar Tax Credit in 2026?
👉 Yes — you can still claim the federal solar tax credit in 2026, but eligibility depends on the type of project and whether you meet specific requirements.
Here’s how it works based on the type of ownership:
🏢 Commercial & Business Solar Projects
If you are installing solar on a commercial building, industrial facility, or other business property, you can still claim the solar tax credit in 2026 as long as:
✔ Your project begins construction by the applicable start date (often tied to safe harbor strategies)
✔ The project is placed in service by the IRS deadline
✔ You meet compliance requirements such as FEOC sourcing rules, prevailing wage standards, and bonus criteria
This means that even if your system isn’t completed by 2026, you may preserve eligibility if you meet key milestones early enough.
💡 Commercial projects still have one of the most powerful federal incentives available — especially when solar is paired with battery storage.
🏠 Residential Solar Projects
Residential tax credit eligibility has changed:
- The traditional 30% residential solar tax credit recently expired for new systems after 2025.
- Some extensions or carve-outs may allow for credits in limited cases (e.g., systems started before the deadline or qualifying low-income residences).
If you installed or start construction on a qualifying system in 2025 or earlier, you may remain eligible under legacy rules. For new residential projects begun in 2026, the standard federal residential ITC is currently no longer available.
📊 How Long Do You Have to Claim the Credit?
✅ Commercial Projects — Key Deadlines
To preserve eligibility, commercial systems typically must:
- Begin construction by certain federal deadlines
- Be placed in service by the IRS cutoff dates
- Comply with reporting and documentation requirements
These deadlines are important because they determine whether the project qualifies for the full 30% base credit and any bonus adders.
Missing these deadlines could reduce the tax credit or eliminate it entirely, so planning early is essential.
📈 Bonus Credits That Can Increase Your Total Federal Incentive
Even in 2026, businesses can stack bonus credits on top of the base 30%:
- +10% Domestic Content Bonus – for U.S.-made components
- +10% Energy Community Bonus – for qualifying project locations
- +10–20% Low-Income Community Bonus – via federal application
📌 When stacked, these incentives can push the total federal benefit to up to 50% of total project costs — one of the most valuable solar incentives ever offered.
📋 Compliance Requirements: What You Must Know
Simply installing solar doesn’t guarantee eligibility. In 2026, claiming the solar tax credit requires compliance with:
📌 FEOC Sourcing Rules
Projects must meet supply chain sourcing thresholds to avoid losing eligibility.
📌 Prevailing Wage & Apprenticeship Requirements
Labor standards must be satisfied for bonus credit qualification.
📌 Documentation & Reporting
Proper records, contracts, and compliance documentation are essential for IRS verification.
🛠 Do Batteries Still Qualify?
Yes — battery storage systems remain eligible when installed with or after a qualifying solar system if they meet IRS rules.
This means solar + battery systems can help you:
- Capture more energy savings
- Improve grid reliability
- Take advantage of demand charge reduction opportunities
- Potentially maintain eligibility for federal incentives
💡 Example: Claiming the Solar Tax Credit in 2026
Let’s say your business installs a $1,000,000 solar + battery system in 2026 that qualifies for:
- 30% base ITC → $300,000
- +10% Domestic Content → $100,000
- +10% Energy Community → $100,000
👉 Total potential federal tax credits = $500,000 (50% of project cost)
This dramatically reduces net investment and shortens payback periods.
🔍 FAQs About Claiming the Solar Tax Credit in 2026
❓ Can a project started in 2025 still qualify in 2026?
Yes — if the project meets safe harbor requirements in 2025, it may preserve eligibility for 2026.
❓ Do residential projects still qualify?
Traditional residential credits expired for projects begun after 2025. Commercial and institutional projects have ongoing federal incentives.
❓ Do state incentives still apply?
Yes — state and utility incentives continue to stack with federal credits in many regions.
📞 Need Help Claiming Your Solar Tax Credit?
At EcoSolar USA, we help businesses and property owners:
✔ Determine solar tax credit eligibility
✔ Maximize federal and state incentives
✔ Evaluate safe harbor timelines and compliance
✔ Design and install efficient solar + battery systems
✔ Navigate documentation and IRS requirements
📍 Contact EcoSolar USA
ORANGE COUNTY Office
13902 Harbor Blvd., Unit 2A
Garden Grove, CA 92843
📞 (714) 265-9077
📱 (408) 538-5858
📧 [email protected]
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TEXAS Office
11602 Bellaire Blvd
Houston, TX 77072
📞 (346) 808-9999
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