30% Commercial Solar Investment Tax Credit:

Reduce Energy Costs

Take control of your operating expenses and protect your business from rising electricity prices with commercial solar. Take advantage of the 30% Investment Tax Credit in 2026, which can significantly improve project economics while delivering long-term utility savings.

Unlike traditional expenses, solar functions as a long-term infrastructure asset. Protecting you from rising power costs and reducing your electric bill.

How It Works

1. Install a Qualifying System – RES makes it easy with our turn key solutions. We handle everything.
2. Claim Applicable Credits – Credits are applied through business tax filings.
3. Realize Financial Benefits – Enjoy your reduced electricity bill.

Eligibility

Commercial projects generally qualify when:

• 5% down on project before July 4th deadline
• The system is installed on a qualifying business property
• The project complies with current federal guidelines
• Construction & placed-in-service requirements are satisfied

What Expenses Qualify

Eligible project costs commonly include:
• Solar panels, inverters, Racking, mounting, and balance-of-system components
• Engineering, design, and project development
• Installation labor and electrical work
• Permitting, inspections, and interconnection costs
• Energy storage systems

Other Incentives

Depending on project structure and eligibility, businesses may also benefit from:

• Accelerated depreciation (MACRS)
• 10% Domestic content incentives (when applicable)
• 10% Community energy incentives (when applicable)
• Utility savings & avoided rate increases
• Demand charge reduction opportunities with battery back up

Why Act Now

• When applied current incentives dramatically improve ROI.

• Commercial tax credit incentives require a 5% deposit before July 4th 2026 to claim credits.

• Commercial solar projects are highly sensitive to timing, permitting, and installation capacity.

• Early planning improves project flexibility and economic outcomes.

Commercial tax credits:

If the project starts construction by July 4, 2026, the business must complete the project within four years.
If the project begins construction after July 4, 2026 it must be installed by December 31, 2027

Why Choose RES

Renewable Energy Systems (RES) specializes in commercial & industrial solar deployment in Alaska.

• Alaskan owned and operated
• Arctic-grade components designed for our harsh climates
• Commercial-scale engineering & system design
• In-house electrical & installation teams
• Proven commercial project experience
• Long-term operational support & service plans

Next Steps

Schedule a free consultation
Receive a transparent estimate
Lock in your tax credit savings

Important Disclaimer

RES provides engineering, design, and installation services. Tax credit qualification, valuation, and treatment are determined by licensed tax professionals and current IRS guidance.

Is There A Tax Battery Backup Power Systems?

Yes, battery backup systems can be part of the 30% Federal Tax Credit if paired with solar.

No, a battery installed alone without solar generally does not qualify for the federal ITC.

How to apply:

Simply file Tax Form 5695 with your tax return

Have questions? We can help!

2026 Commercial Solar Federal Tax Credit Update

Commercial solar projects face tighter deadlines beginning in 2026. While the federal Section 48E Investment Tax Credit (ITC) still starts at 30%, eligibility now depends on strict construction, sourcing, and labor requirements.

Early planning is critical.

Key Deadlines

To secure the full 30% credit, your project must:

Begin Construction by July 4, 2026
Projects that start by this date generally have up to four years to complete installation.

Be Placed in Service by December 31, 2027
If construction does not begin by July 4, 2026, the system must be fully operational by the end of 2027.

Missing these milestones may reduce or eliminate eligibility.

What Counts as “Beginning Construction”?

The IRS recognizes two methods:

Physical Work Test – Significant on-site construction activity (required for most projects over 1.5 MW).
5% Safe Harbor – Projects 1.5 MW or smaller may qualify by incurring at least 5% of total project costs before the deadline.

New 2026 Compliance Requirements

Foreign Entity Restrictions (FEOC)
Beginning January 1, 2026, projects using prohibited foreign components may lose eligibility. At least 40% of system component value must be sourced from non-FEOC suppliers for 2026 starts.

Prevailing Wage & Apprenticeship
Projects 1 MW or larger must meet federal labor standards to receive the full 30% credit. Noncompliance reduces the base credit to 6%.

Bonus Credit Opportunities

Eligible projects may qualify for additional incentives:

+10% for Domestic Content
+10% for Energy Community location

These may be stacked when requirements are met.

Direct Pay for Nonprofits

Schools, nonprofits, and local governments may receive the 30% credit as a refundable payment through Direct Pay, subject to the same 2026–2027 deadlines.

Why Act Now

Commercial solar requires engineering, procurement, compliance documentation, and installation scheduling. With tighter rules in 2026, early engagement helps preserve eligibility, supply chain flexibility, and install capacity.

Schedule a Commercial Solar Energy Analysis
RES provides incentive review, compliance guidance, and ROI modeling tailored to your business.

Tax credit eligibility should be confirmed with your CPA or tax advisor.

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