INSIGHTS

Prevent the New Tax Credit Rules From Derailing Your Solar Projects

Jan 19, 2026

If you’re planning a commercial solar project, the clock is ticking. The Big Beautiful Bill (OBBB) has completely rewritten the playbook for solar tax credits, and the changes are significant.

 

What Changed?

The new rules transformed what was once a flexible and straightforward process into a complex maze of strict deadlines and requirements to meet. The widely available 5% safe harbor for large construction projects over 1.5MW is gone, and the flexible construction timelines were cut short with a deadline of December 31, 2027.

The most critical? If your project is planned to go outside the deadline, you must begin construction by July 4, 2026 to be keep your ITC eligibility.

 

Two Pathways to Eligibility

There are two options:

  1. Complete everything by 2027 — If you place your project in service by December 31, 2027, there is no construction deadline required (though it must be operational within two years).
  2. Begin by mid-2026 — If you start construction by July 4, 2026, you can either complete the project after the 2027 deadline within four years or prove continuous work.

Miss any of these windows, and you may lose eligibility.

 

The SmartFlower Solution

While traditional solar installations may struggle with multi-year timelines, complex supply chains, and construction continuity requirements, SmartFlower offers commercial buyers a simple alternative. With less than a day of installation time, immediate operation, and an all-in-one system, SmartFlower eliminates the compliance difficulties that may come with conventional solar projects.

 

Get the Full Picture

These new rules can be complex, and the stakes are high. That’s why SmartFlower created a comprehensive guide with everything you need to know to safeguard your projects from the OBBB rules.

Download here:

 

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