PROGRAM DETAILS
WHAT YOU GET
The Investment Tax Credit (ITC) under Section 48E allows businesses to claim up to 30% of qualified solar or storage costs as a dollar-for-dollar credit against federal tax liability. For commercial-scale projects, the 30% rate requires meeting prevailing wage and apprenticeship (PWA) requirements — a compliance standard GEC builds into every project.
*The One Big Beautiful Bill (OBBB), signed July 4, 2025, accelerated the ITC phase-out. Construction must begin by July 4, 2026 to qualify for the 30% credit. Act now — this window is closing.
CREDIT TYPE
Dollar-for-Dollar Tax Reduction
Reduces your federal tax bill directly — not just your taxable income.
WHEN YOU CLAIM IT
Year System is Placed in Service
Filed with your annual federal return via IRS Form 3468.
WHO QUALIFIES
Any Taxpaying Business or Individual
Tax-exempt entities receive the equivalent cash value through Direct Pay.
WHAT COUNTS TOWARD BASIS
Equipment, Labor & Soft Costs
Permitting, interconnection, and installation all count toward the credit calculation.
ITC + MACRS
Both Apply to the Same System
MACRS depreciation basis is reduced by 50% of the ITC — not the full credit amount.
CONSTRUCTION DEADLINE
Begin by July 4, 2026
Projects missing this date face a sharp reduction or loss of the credit entirely.
COMMON QUESTIONS
FREQUENTLY ASKED QUESTIONS
The base ITC rate is 6%. To claim the full 30%, a project must either be under 1 MW AC (automatic qualification) or meet prevailing wage and apprenticeship (PWA) requirements. For commercial-scale projects, this means paying Davis-Bacon wages and using qualified apprentices for a minimum percentage of labor hours. GEC ensures PWA compliance on all applicable projects.
A tax credit reduces your tax liability dollar-for-dollar. A $225,000 credit means $225,000 less in taxes owed. A deduction only reduces taxable income — the actual tax savings depend on your bracket. The ITC is a credit, making it significantly more valuable.
Unused ITC carries forward to future tax years. You don't lose the credit — you apply it when you have sufficient tax liability.
Only if the project is placed in service by December 31, 2027. Projects that start after July 4, 2026 and are not operational by the end of 2027 receive no ITC. This is an extremely compressed timeline — effectively 18 months from the deadline to full completion.
Projects beginning construction after December 31, 2025 must certify that equipment is not sourced from or materially assisted by Foreign Entities of Concern (primarily China, Russia, Iran, North Korea). Non-compliant equipment can disqualify the entire project from ITC eligibility. GEC specifies FEOC-compliant equipment on all new projects.
CALCULATE YOUR ITC VALUE
THE JULY 4, 2026 DEADLINE
IS APPROACHING
Your ITC value depends on system cost, PWA compliance, bonus adder eligibility, and ownership structure. Schedule a site assessment now and we'll calculate your expected credit and map out the path to capture it.
OUR ROLE
HOW GEC HELPS
The ITC requires proper documentation, PWA compliance, and construction-start verification. GEC structures every project for maximum credit capture.
PWA compliance planning and documentation
Bonus adder eligibility analysis (domestic content, energy community, low-income)
Physical Work Test documentation for begin-construction
FEOC-compliant equipment specification
ITC-ready cost documentation for your tax advisor
Direct Pay guidance for tax-exempt entities
WHO QUALIFIES
ELIGIBILITY REQUIREMENTS
Solar photovoltaic (PV) systems and battery energy storage (minimum 5 kWh capacity)
Projects 1 MW AC or larger must meet prevailing wage and apprenticeship (PWA) requirements for the 30% rate
PWA: pay Davis-Bacon prevailing wages; qualified apprentices must perform at least 15% of labor hours (2024+ starts)
Projects under 1 MW AC automatically qualify for the 30% rate without PWA compliance
ITC is claimed by the system owner — for PPAs/leases, the financing partner claims the credit
Construction must begin by July 4, 2026 to qualify for the 30% credit under current law
Nonprofits, municipalities, schools, and other tax-exempt entities can receive the ITC value as a cash refund through Direct Pay (elective payment) — file IRS Form 990-T with elective payment election and complete pre-filing IRS registration.
Projects beginning construction after December 31, 2025 are subject to Foreign Entity of Concern (FEOC) restrictions. Equipment sourced from entities tied to determined countries can disqualify a project. GEC specifies FEOC-compliant equipment on all new projects.
INCENTIVE STACKS
STACKS WITH
