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GreenSpark's Guide to Securing Commercial Solar Incentives
As federal energy policy continues to shift, one thing is clear for New York businesses and organizations considering clean energy: the clock is ticking to secure the full value of commercial solar incentives.
At GreenSpark, we’re helping organizations across New York State and beyond take advantage of the 30% Investment Tax Credit (ITC) before upcoming deadlines change the rules.
Learn how to secure this incentive before it sunsets and discover what’s still in play to maximize the return on your commercial clean energy investment.
Key Highlights at-a-glance:
- 30% ITC is available until July 3, 2026 by contracting and depositing by the deadline
- Sign contract + deposit by Dec. 31, 2025, to avoid new FEOC restrictions
- Safe harboring lets you claim the incentive even if you build later
- Offset 60%+ of project costs by combining with other commercial solar incentives
What Commercial Solar Incentives Are Still in Play in New York
Despite headlines and confusion around policy shifts, the most valuable commercial solar incentives remain intact:
- 30% Investment Tax Credit (ITC)—Eligible businesses can get up to 30% of the total system cost as a tax credit (or direct pay for non-profits) by contracting and paying a deposit on the project (i.e., safe harboring) by July 3, 2026.
- 100% Bonus Depreciation—Businesses can deduct the entire project cost in the first year, significantly improving ROI.
- NYSERDA New York State Incentive—The $.25/watt incentive for commercial systems is still available for qualifying projects in New York State.
These incentives can offset up to 60% or more of your total project cost — but only if you act quickly.
What’s Gone Away for Commercial Solar Projects
One notable change is that the USDA REAP Grant is closed and no longer accepting applications. While it was a strong driver for agricultural producers and rural businesses, the continued ITC stability and bonus depreciation make solar a financially sound investment for many New York businesses, even without this added grant opportunity.
ITC Safe Harboring: What’s It Mean & When to Act
Safe Harboring Defined:
Safe harboring is an IRS-recognized process that allows you to secure today’s federal ITC incentive by showing project commitment before the deadline.
To qualify, you only need to do the following by July 3, 2026 (if possible, by December 31, 2025, to avoid any added equipment sourcing requirements).
1. Sign a contract with your solar installation partner
2. Make a deposit of 5–15% of the total project cost
Completing these two tasks “locks in” your eligibility for the current tax credit structure. You’ll then have up to four years to complete construction.
When to Act:
Though July 3, 2026, is the final deadline to secure the current ITC structure, businesses that can act quickly (contracting and depositing by December 31, 2025) can eliminate the risk of potential project cost creep due to the new FEOC (Foreign Entity of concern) restriction. FEOC rules will apply to any projects contracted on or after January 1, 2026. However, the guidelines for equipment sourcing will likely not be known until the end of 2026.
For businesses still evaluating project timing or whether solar factors into your capital budget, safe harboring by December 31, 2025, is the ideal low-risk step to:
- Preserve your 30% ITC eligibility,
- Avoid future FEOC compliance costs, and
- Buy time to complete your project on your own schedule.
Key Deadlines at a Glance for Commercial Tax Credits & Safe Harboring
|
Deadline |
What You Lock In |
|
December 31, 2025 |
✅ 30% Federal Tax Credit ✅ No FEOC (Foreign Entity of Concern) restrictions |
|
July 3, 2026 |
✅ 30% Federal Tax Credit (with FEOC restrictions) |
Why Act Now
- FEOC restrictions will make it harder and potentially more expensive to source equipment that qualifies for the 30% ITC. The guidelines will be known in late 2026.
- Interconnection queues and supply chains are expected to tighten as more businesses rush to meet deadlines.
- Electricity Rates continue to climb, while market volatility and energy tariffs make solar an increasingly valuable hedge against long-term operating costs.
Waiting could mean paying more later — or losing access to the most favorable financial conditions for clean energy investment.
Why Partner with GreenSpark
GreenSpark Solar is proud to be the #1 Commercial Solar Contractor in New York State and the #1 Community Solar EPC in the U.S, as ranked in Solar Power World’s 2025 Top Solar Contractors.
We’ve been designing and building commercial solar projects for over two decades, helping organizations of every size navigate policy changes and maximize their incentives.
When you partner with GreenSpark, you’re not just getting a highly qualified and industry-vetted builder — you’re gaining a trusted partner who’s navigated every policy shift since 2002.
Our team will:
- Develop a tailored financial model for your business,
- Manage permitting and interconnection complexity, and
- Ensure your project qualifies for the full available tax benefits.
Don't Miss the Window
If your business is considering solar, now is the time to act.
Lock in your incentives. Preserve your savings. Protect your future energy costs.
📅 Connect with our commercial solar experts today to learn how to secure your tax credit before it’s gone.
