Up to 30% of eligible costs, plus adders — but solar and wind now run against a hard construction deadline. Timing is the whole analysis.
| Quick Facts | |
|---|---|
| Credit amount | 6% base; 30% with prevailing wage and apprenticeship compliance; bonus adders for domestic content and energy communities |
| Solar & wind deadline | Construction begun by July 4, 2026, OR placed in service by December 31, 2027 |
| Other technologies | Storage, geothermal, nuclear and others retain credits, with phaseout beginning for construction starts after 2033 |
| Sourcing rules | Foreign-entity-of-concern restrictions deny credits above material-assistance thresholds — 40% for 2026 construction starts, rising annually |
| Monetization | Traditional tax equity, or direct credit sale under §6418 transferability |
| Stacks with | Historic and LIHTC projects adding solar or storage; state energy incentives |
For real estate developers the common play is rooftop or canopy solar on a rehabilitation or housing project, and safe-harbouring construction starts before the deadline. For investors, transferability created a second market: credits can be purchased directly at a discount without a partnership structure, though tax equity still captures the depreciation.
If you have a solar or wind component and have not confirmed your beginning-of-construction position, that is a same-week conversation rather than a next-quarter one.
We determine which execution — tax equity partnership or §6418 transfer — nets your project more, model the wage and apprenticeship and adder math, and connect credits with buyers. Deadline triage for solar and wind projects is immediate.
Check my project against the deadlinesOfficial references: IRC §48E, §6418; IRS Notice 2025-42 (beginning of construction); OBBBA (P.L. 119-21).
Under the 2025 tax law, solar and wind projects qualify only if construction began by July 4, 2026, or the project is placed in service by December 31, 2027. Other technologies including storage, geothermal and nuclear retain credits, with phaseout beginning for construction starts after 2033.
The 6% base rate is multiplied fivefold where the project satisfies prevailing wage and apprenticeship requirements. Additional bonus adders are available for domestic content and for projects in energy communities.
Tax equity means an investor joins the ownership structure and receives credits plus depreciation. Transferability under Section 6418, available for energy credits only, means selling the credit for cash — simpler, but it leaves the depreciation behind. Which nets more depends on the project.
Foreign-entity-of-concern restrictions deny credits where material assistance from prohibited foreign entities exceeds threshold percentages — 40% for 2026 construction starts, rising annually. Supply chain documentation now matters to the credit, not just to procurement.
If your beginning-of-construction position is not documented, that is this week's problem. Let's look at it.
