Commercial Solar Tax Credit 2025: What 30% Means for Your ROI

Time Kills Returns

H.R. 1 (One Big Beautiful Bill) kept the 30% Investment Tax Credit (ITC) for commercial solar—but only within a short window.

Projects must either start construction by July 4, 2026 or be placed in service by December 31, 2027 to qualify. After that, the tax credit disappears entirely.

These modeled examples show how much value the tax credit adds—and what happens to ROI if you miss it.

Compare Your Options

Mid-Sized Warehouse 45,000 sqft | Solar Only | $554,600 Project
Multi-Tenant Office Space 4-Story | Solar & ESS | $1.37MM Project
Independent Hotel 50 Key | Solar & ESS | $472K Project

With 30% ITC

    Without ITC

      Modeling Assumptions
      • All incentives applied in Year 1.
      • Includes Federal ITC (if eligible), accelerated depreciation, and state MACRS.
      • Tax rates modeled at 30% federal + 8% state.
      • Year-1 savings modeled at current utility rates.

      Examples are based on real LCG-modeled projects, not generic estimates.

      Learn more about the commercial solar Investment Tax Credit (Section 48E) .

      Disclaimer: The ITC Impact Explorer provides illustrative scenarios only and should not be relied upon as tax, legal, or financial advice. Actual incentives and outcomes depend on your specific circumstances. Please consult with your CPA or tax advisor to confirm eligibility.

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      Don’t wait for incentives to disappear. Send us your site—or explore projects we’ve already modeled.

      ITC Impact Explorer

      We modeled three real commercial solar projects to show how the 30% Investment Tax Credit shapes ROI—before the window closes.

      H.R. 1 (One Big Beautiful Bill) kept the 30% Investment Tax Credit (ITC) for commercial solar—but only within a short window.

      Projects must either start construction by July 4, 2026 or be placed in service by December 31, 2027 to qualify. After that, the tax credit disappears entirely.

      These modeled examples show how much value the tax credit adds—and what happens to ROI if you miss it.

      Select Your Project Type:

      Mid-Sized Warehouse 45,000 sqft | Solar Only | $554,600 Project
      Multi-Tenant Office Space 4-Story | Solar & ESS | $1.37MM Project
      Independent Hotel 50 Key | Solar & ESS | $472K Project
      Modeling Assumptions
      • All incentives applied in Year 1.
      • Includes Federal ITC (if eligible), accelerated depreciation, and state MACRS.
      • Tax rates modeled at 30% federal + 8% state.
      • Year-1 savings modeled at current utility rates.

      Examples are based on real LCG-modeled projects, not generic estimates.

      Learn more about the commercial solar Investment Tax Credit (Section 48E) .

      Disclaimer: The ITC Impact Explorer provides illustrative scenarios only and should not be relied upon as tax, legal, or financial advice. Actual incentives and outcomes depend on your specific circumstances. Please consult with your CPA or tax advisor to confirm eligibility.

      Want Your Own Solar ROI Preview?

      Submit a Site for Review

      Commercial Solar Tax Credit — FAQs

      What is the ITC?
      The Investment Tax Credit (ITC) lets commercial property owners deduct a percentage of eligible solar project costs directly from federal taxes. In 2025, the credit is 30%—often the biggest single driver of faster payback and higher ROI.
      What does “start construction” actually mean for the ITC?
      You can satisfy start construction by either (a) beginning physical work of a significant nature (e.g., site prep, racking, transformers) or (b) meeting the 5% safe harbor test by incurring at least 5% of total project cost. Many C&I projects use equipment deposits to safe harbor and lock the credit year.
      What happens if I miss the ITC deadline—are all incentives gone?
      The 30% federal credit modeled here drops to 0% after the current window (start construction by July 4, 2026 or placed in service by December 31, 2027, per your page language). Depreciation and utility savings still help, but the largest incentive is gone.
      Why act before the end of 2025 if the deadline is July 2026?
      Engineering, permitting, interconnection, financing, and construction take months. Starting in 2025 builds buffer so you don’t miss deadlines—and lets you secure compliant equipment before markets tighten.
      What about FEOC (Foreign Entity of Concern) rules on materials?
      Projects placed in service after January 1, 2026 must use modules/batteries that meet FEOC rules. Using non-compliant gear can disqualify a project from the credit—regardless of when you purchased it. Planning now helps ensure compliant sourcing.
      If I buy equipment in 2025, am I safe?
      Only if that equipment is FEOC-compliant when installed. Buying “any” modules now doesn’t guarantee eligibility in 2026. Work with partners who can document supply-chain compliance and reserve allocations early.
      Should I expect supply chain constraints?
      Yes. FEOC-compliant modules/batteries are likely to see higher demand, longer lead times, and price pressure. Getting ahead in 2025 helps you avoid the rush and protect ROI.
      How does LCG simplify this?
      We translate tax rules into financial terms, manage safe harbor steps, vet compliant supply chains, and coordinate contractors/financiers so your project meets deadlines and preserves the 30% credit.