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If you’ve been considering solar for your business, 2026 is shaping up to be a pivotal year to do so. However, timing is everything. Starting your solar project before July 4, 2026, could make a major difference in incentives available for your business.

By starting construction before the Fourth of July, you can still lock in the 30% federal Investment Tax Credit (ITC) and have the following four full years to complete your project. That flexibility can be invaluable for planning budgets, construction schedules, or operational timelines. These contingencies will allow many commercial businesses to lock in their savings with a longer runway to complete the project.

If you choose to wait till later in 2026 to begin construction, you’ll still be eligible for the 30% federal tax credit. However, you’ll face new FEOC (Foreign Entity of Concern) concerns and must complete your project by the end of 2027. While this still allows you to capitalize on the federal tax credit, it is recommended that businesses act fast to secure a longer time frame.

Here's the good news: you don’t need to break down to secure the credit. By investing just 5% of your project’s total cost this year you can “safe harbor” your project- meaning the IRS considers the project already started. This simple step ensures you remain eligible for the full 30% tax credit, without the pressure of rushing your project’s start or completion.

Safe harboring allows you to take advantage of today’s incentives while maintaining flexibility for when actual construction begins. For many businesses, it’s a smart way to lock in savings and plan strategically for 2026 and beyond. If you’d like to talk through what safe harboring could look like for your specific project, our team would be happy to walk you through the details and help you secure your spot under the 30% federal tax credit.

To learn more about Halo Solar, contact us today and follow us on Facebook, Instagram, and LinkedIn.