Please consult a tax professional or financial advisor to see if the following information applies to your business.
On August 16, 2022, President Joe Biden signed the Inflation Reduction Act of 2022 (IRA), which expanded tax incentives for clean energy projects. However, the One Big Beautiful Bill Act, signed into law on July 4, 2025, significantly amended the IRA by accelerating the phase-out of many incentives, particularly for solar.
Most original IRA provisions became effective January 1, 2023, but current rules now include strict deadlines and restrictions.
How Federal Incentives Apply to Sunbolt
Sunbolt solar workstations and charging solutions (all under 1 MW AC) qualify as solar electric property (photovoltaic systems with integrated batteries). Eligibility depends on the installation type (commercial/public vs. residential/private) and timing:
- Commercial/Public Installations (most common for Sunbolt, e.g., campuses, parks, businesses, nonprofits, stadiums):
- Eligible for the Clean Electricity Investment Tax Credit (Section 48E): Base 30% credit on qualified costs (panels, batteries, wiring, etc.).
- Bonus adders possible (+10% domestic content, +10-20% for energy communities/low-income areas).
- Projects can qualify beyond 2025 if construction begins by July 4, 2026, and placed in service by December 31, 2027-2028 (exact deadline varies by guidance).
- Stricter rules for 2026+: No material assistance from Foreign Entities of Concern (FEOC); tightened “beginning of construction” requirements.
- Direct pay available for tax-exempt entities (e.g., nonprofits, governments); transferable for taxable entities.
- Prevailing wage/apprenticeship rules waived for projects <1 MW.
- Residential/Private Installations (less common, e.g., home backyard use):
- Eligible for the **Residential Clean Energy Credit (Section 25D)**: 30% credit.
- Only if placed in service (installed and operational) by December 31, 2025** — no credit for installations after this date.
- Nonrefundable (carry forward unused amounts); no direct pay.
As with all tax legislation, the IRS continues to issue guidance. In our opinion, Sunbolt products remain eligible for favorable treatment if installed timely (especially commercial projects starting now).
Solar costs have fallen dramatically, so projects often remain viable even with reduced incentives due to energy savings.
Please consult a tax professional or financial advisor for your specific circumstances, project type, and timing. Rules depend on ownership, location, and exact deadlines. Check IRS Forms 3468 (commercial) or 5695 (residential), or visit irs.gov for latest guidance.
