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Editor’s Note (Updated July 2025):
Congress has officially passed the “Big Beautiful Bill,” finalizing major changes to clean energy incentives. Below, you’ll find the most up-to-date details on what stays the same, what’s changing, and what your business should do next to secure the full commercial solar tax credit benefit (and other clean energy tax credits) before it’s too late.
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What’s Happening to the Commercial Solar Tax Credit (Section 48E)?
We’ll start with the good news. The final legislation was passed, and the commercial solar tax credit, made available through the Inflation Reduction Act (IRA), is still available. This provision lets businesses claim 30% of qualified solar project costs as a federal tax credit.
But quite a bit has changed. Here’s what you need to know if you’re a New York State business considering a clean energy project.
"The Big Beautiful Bill": Key Takeaways for Commercial Solar in New York
- ✅ The New Window for the Commercial Solar ITC
For commercial and utility-scale systems, the solar ITC will remain at 30% through 2028, then gradually decrease until it sunsets in 2031. To claim the full credit, however, construction must begin within 12 months of the bill’s signing; otherwise, a placed in service deadline of December 31, 2027, applies to qualify for the credit.
✅ FEOC Rules Apply to All Projects
A key change is the new Foreign Entity of Concern (FEOC) provision. To claim the Section 48E Investment Tax Credit at all — or any direct pay or transfer — your project faces restrictions on the “material assistance” from a prohibited foreign entity, which includes components (solar modules, racking, etc.). The threshold starts at a 40% domestic content requirement for projects that begin in 2026 and increases in percentage required each year.- ✅ Transferability Remains — with New Limits
You can still transfer (sell) your credits to another company — but under the new FEOC rules, they can’t be transferred to specified foreign entities or any entity getting restricted foreign assistance. - ✅ EV Charging Incentives Have an Expiration Date
The tax credit for installing EV charging stations at your business will now expire on June 30, 2026. Businesses planning to add chargers for fleets, employees, or customers should get projects underway to secure this savings while it lasts. - ✅ Energy Storage Stays Eligible
Standalone energy storage projects remain fully eligible for the ITC under the original Inflation Reduction Act rules — with no new placed-in-service deadline. This is a great opportunity for businesses looking to boost energy resilience, especially for electricity-intensive operations.
These new timelines and requirements mean that planning ahead is more important than ever. GreenSpark is here to help you plan smart, stay compliant with FEOC rules, and secure your incentives before deadlines close in.
What’s at Stake for New York Businesses Considering Solar?
The Section 48/48E Commercial ITC covers 30% of eligible project costs for solar arrays, battery energy storage, and associated infrastructure. For many New York businesses, this adds up to hundreds of thousands — or even millions — in potential federal tax savings.
Here are just a few examples of what our customers have saved through the ITC:
That’s before factoring in these additional commercial solar incentives:
- NYSERDA NY-Sun grants
- Bonus tax credits for domestic content or energy community (up to an additional 20%)
- USDA REAP Grant, covering up to 25% of eligible project costs
- Equipment depreciation
Bottom Line? These incentives make solar one of the most strategic ways to maximize the return on investment while significantly reducing long-term energy costs. This is especially important for manufacturers, food producers, hospitals, and warehousing operations with high electricity demands.
What Your Business Should Do Now If You’re Considering Solar
The message is clear: if you’re planning a commercial solar, storage, or EV charging project, starting soon helps you secure federal savings and avoid new restrictions.
We’re here to make it simple. From project design to incentive paperwork and installation, GreenSpark is your partner for making clean energy work for your bottom line.
- 1. Start your project ASAP with a qualified, agile partner.
Timing matters more than ever. GreenSpark Solar has over two decades of experience helping businesses navigate utility coordination, permitting, and interconnection timelines. Our agile team will work quickly to ensure we complete key project milestones needed for ITC eligibility.
- 2. Maximize your incentives.
We’ll help you evaluate and apply for additional savings opportunities such as NYSERDA grants, MACRS depreciation, bonus credits, and USDA REAP funding to deliver a tailored, turnkey system that drives long-term value for your operations.
- 3. Lock in your contract and install date.
With utility rates rising and reliability concerns growing, locking in your energy costs now with solar is one of the most effective ways to control overhead and meet sustainability goals — all while ensuring long-term business resilience. If the numbers look good, don’t wait to confirm your project!
Don’t Leave Thousands on the Table — Let’s Build Your Solar Strategy.
GreenSpark Solar is one of New York State’s most experienced commercial solar developers. We’ve helped hundreds of mission-driven businesses secure funding, lock in tax credits, and reduce long-term energy costs.
We’ll help you:
✅ Evaluate your project’s eligibility and timeline against proposed requirements
✅ Design a custom solar energy system tailored to your operations
✅ Navigate procurement, permitting, and interconnection deadlines with confidence
Now is the time to take control of your energy future — and your energy budget.
Contact us today to schedule your no-obligation commercial solar consultation.
