In 2026, communicating the 30% Investment Tax Credit (ITC) requires precision because recent legislative changes under the One Big Beautiful Bill Act (OBBBA) have significantly altered eligibility for homeowners and businesses.
The most effective communication strategy involves highlighting these three critical pillars:
1. Highlighting the “Construction Deadline” for Businesses
For commercial and utility-scale projects, the 30% credit is still available but tied to strict timelines.
Actionable Fact: Projects must begin construction by July 4, 2026, to qualify for the full 30% credit.
Outreach Tip: Advise clients that “beginning construction” can be proven through the Physical Work Test (meaningful onsite/offsite work) or the 5% Safe-Harbor Rule (incurring at least 5% of total project costs before the deadline).
2. Communicate the “Shift” for Homeowners
The direct 30% residential tax credit (Section 25D) for solar and battery systems expired on December 31, 2025.
The New Alternative: Homeowners can now only access the 30% benefit indirectly through Third-Party Owned (TPO) models, such as solar leases or Power Purchase Agreements (PPAs).
Messaging: Focus on “Prepaid Plans” or leases where the installer claims the 48E commercial credit and passes the savings to the homeowner in the form of lower monthly payments or reduced system prices.
3. Emphasize “Bonus Adders” to Increase Value
In 2026, 30% is just the base. Certain projects can reach 40% or 50% total credits.
Domestic Content: An extra 10% if specific percentages of steel and iron are U.S.-sourced.
Energy Communities: An extra 10% for projects located in areas with a history of fossil fuel employment.
Low-Income Communities: Possible 10-20% adders for qualifying locations.
