The Big Beautiful Bill Act brought significant changes to tax credits and incentives for businesses pursuing green initiatives. Importantly, it didn’t eliminate these benefits outright—it simply shortened the timeline to act. Now, decisions must be made quickly, with a key deadline of December 31, 2025.
Why the Big Beautiful Bill Act Matters for Businesses
As a business, we understand that every investment needs a return. Profitability sustains not only leadership goals but also our employees’ livelihoods and our contribution to national economic growth. In a recent Forbes article, Council Member Ross Kernez highlighted that investors often examine metrics such as operating profit margins before committing funds. This is a reality we acknowledge.
Source: Calculating Your Company’s Growth Rate (And Other Important Business Indicators)
When Solar Energy May Not Be the Right Choice
For some facilities, the numbers won’t work. If your electricity rate is around $0.06/kWh, state incentives are minimal, power usage is high, and there’s limited roof or land space for solar, the investment may not deliver a viable return. Sustainability must support both environmental and operational health.
When the Big Beautiful Bill Act Creates a Strong Solar Opportunity
In states with higher energy rates, strong REC values, robust state-level incentives, and ample structurally sound rooftops or open land, solar can meaningfully reduce operating costs. The Big Beautiful Bill may be the push you’ve been waiting for. While the act accelerates the sunset of certain incentives, it also challenges businesses to ask: What are we waiting for?
With just months left, keep in mind that a solar feasibility assessment can take as little as 5–10 days. That’s enough time to determine whether this move makes financial and operational sense.
Big Beautiful Bill Act Solar Incentive Deadlines
1. Project Initiation by December 31, 2025
To qualify, projects must begin construction—either by initiating physical on-site work or by incurring at least 5% of the project’s cost—within 12 months of the bill’s enactment (i.e., by July 4, 2026). This timeline establishes a safe‑harbor for eligibility under Sections 45Y (PTC) and 48E (ITC)
2. Construction Start by July 4, 2026
This date marks the end of the one‑year safe‑harbor period beginning at enactment. Under IRS guidance, “beginning construction” may still be achieved through off-site work or meeting the 5% cost threshold, although new rules may tighten the criteria.
3. Placed in Service by December 31, 2027
Projects that begin construction after the safe‑harbor deadline (July 4, 2026) must be placed in service—meaning operational and delivering power—by December 31, 2027, to maintain eligibility for the full tax credit. After that date, projects are no longer eligible for these incentives.
Other Key Sections of the Big Beautiful Bill Act
- Section 70506: Termination of the Residential Clean Energy Credit.
- Section 70507: Termination of the Energy Efficient Commercial Building Deduction.
- Section 179D Amendment: Adds subsection (i) specifying that the deduction no longer applies to properties whose construction begins after June 30, 2026.
- Section 70511: Termination of the Clean Hydrogen Production Credit—moved up from January 1, 2033, to January 1, 2028.
Why Acting Before the Deadlines Matters
The window is short, but the potential impact is long-term. If your operational profile and facility conditions align, acting before these deadlines could lock in benefits that will soon disappear.
