Solar Investment Credits
- Typical userOwners of qualifying solar projects
- IRS scrutinyOrange
- Sponsors8
Overview
A federal credit under section 48E for directly owning qualifying clean-electricity property such as solar.
IRS scrutiny
Frequently examined. Details, valuations and documentation matter a great deal.
Rules, risks and sources
Key rules
OBBBA: wind/solar facilities beginning construction after July 4, 2026 must be placed in service by Dec. 31, 2027. Notice 2025-42 (which had made the Physical Work Test the only beginning-of-construction method for most wind and solar facilities) was vacated in full and remanded to the IRS by the U.S. District Court for the District of Columbia on June 6, 2026 (Oregon Environmental Council v. IRS, No. 25-4400 (CKK)). Appeal status is not confirmed: we could not verify whether an appeal has been filed as of Oct. 20, 2026. The IRS's earlier beginning-of-construction notices (Notice 2013-29 and successors) recognize two methods, the Physical Work Test and the Five Percent Safe Harbor, each requiring continuous progress toward completion. No replacement IRS guidance was found as of Oct. 20, 2026. Prohibited-foreign-entity material-assistance rules apply to facilities beginning construction after Dec. 31, 2025 (Notice 2026-15). Credits are general business credits subject to §469 passive-activity rules (Strieby, T.C. Memo. 2025-28; Olsen, aff'd 10th Cir.).
Primary sources
- IRS Notice 2025-42 (beginning of construction, §§45Y/48E wind & solar), vacated June 6, 2026 (D.D.C.)
- Oregon Environmental Council v. IRS, No. 25-4400 (CKK) (D.D.C. June 6, 2026), opinion vacating Notice 2025-42
- IRS, Working Families Tax Cuts page (formerly the One Big Beautiful Bill provisions page)
- IRS IR-2026-23, guidance on material assistance from prohibited foreign entities (Feb. 12, 2026)
- Strieby v. Commissioner, T.C. Memo. 2025-28 (summary)
- 26 U.S.C. §469 (LII)
- IRS-CI, DC Solar Ponzi scheme sentencing
- IRS FAQs on OBBB modification of §§25C/25D etc. (Q7)
Facts checked 2026-10-20.
Common questions
Can I use a solar investment credit against tax on my wages?
Usually not. The credit is a general business credit subject to the passive activity rules, so unless you materially participate in the solar business it can generally offset only tax on passive income, and wages are not passive income.
Source: 26 U.S.C. §469
What is the deadline for solar projects?
Solar and wind facilities that begin construction after July 4, 2026 must be placed in service by December 31, 2027 to qualify. IRS Notice 2025-42, which had narrowed how construction can be shown to begin, was vacated by a federal court on June 6, 2026.
Sources: 26 U.S.C. §48E(e)(4) and effective-date note (P.L. 119-21 §70513); Oregon Environmental Council v. IRS, No. 25-4400 (D.D.C. June 6, 2026)
Is the residential solar credit still available?
No. The residential clean energy credit is not allowed for expenditures made after December 31, 2025.
Source: IRS, Working Families Tax Cuts
Sponsors that offer this strategy
- Cherrytree Group, LLC Unclaimed 39/100 · Serious concerns Public record
- DC Solar Solutions, Inc. (defunct) Unclaimed 10/100 · Serious concerns Public record
- Deal Star (Dealstar) Unclaimed 39/100 · Serious concerns Public record
- Fortified Solar, LLC Unclaimed 55/100 · Mixed evidence Public record
- Inception Financial Unclaimed 43/100 · Weak evidence Public record
- Solar Solutions of Missouri, LLC Unclaimed 41/100 · Weak evidence Public record
- Trinary Capital, LLC Unclaimed 49/100 · Weak evidence Public record
- Valur, Inc. Unclaimed 54/100 · Weak evidence Public record
Advisors who offer this strategy
- RubinBrown Unclaimed CPA and advisory firm Public record