By CitiGreen Inc. | Nov 05, 2025
It is November 2025, and time is running out for businesses that want to secure the 40 to 50 percent federal solar Investment Tax Credit.
On July 4, 2026, this incentive is scheduled to end completely, removing one of the biggest financial benefits commercial solar has ever offered.
To qualify, projects must begin construction before the deadline, and with long utility timelines, rising equipment demand, and new regulations on the horizon, waiting until 2026 could mean missing out entirely.
CitiGreen is encouraging all clients to get contracts signed and deposits in before the end of this year to guarantee eligibility under current rules.
What the July 4, 2026 Deadline Means
Under Section 48E of the Inflation Reduction Act, businesses can claim a 40 to 50 percent federal tax credit for qualified solar projects, but only if construction begins before July 4, 2026.
To meet the federal “begin construction” standard, you must:
- Make a 10 percent project deposit, or
- Begin physical construction on your system or interconnection equipment.
Both options require documentation and proper timing. CitiGreen handles every detail to ensure your project qualifies and your investment is protected.
Why We Are Urging Clients to Act Before Year-End
1. FEOC Regulations Could Change in 2026
CitiGreen’s equipment partners, including QCELLS and Hyundai, are fully compliant with current FEOC (Foreign Entity of Concern) regulations. However, the federal rules governing domestic content may change as early as January 2026, even for U.S.-made products.
That means equipment that qualifies for tax credits today might not next year.
By signing your contract and placing your 10 percent deposit before December 31, 2025, you lock in compliance and pricing under today’s standards.
2. Utility Interconnection Queues Are Backed Up
PG&E and other utilities are already operating at capacity, and approvals that once took 90 days now take 6 to 12 months. Delaying your deposit or interconnection submission into early 2026 could push your project past the federal deadline.
3. Incentives Will End July 4, 2026
This is not a phase-down. It is a hard stop. After July 4, 2026, the 40 to 50 percent federal tax credit disappears. Once the deadline passes, there is no way to retroactively qualify.
How to Stay Eligible
CitiGreen makes the process straightforward:
- Send one year of electric bills for a free review.
- Receive your side-by-side proposals comparing 2025 versus 2026 scenarios.
- Sign your contract and make your 10 percent deposit before December 31, 2025.
- CitiGreen handles engineering, permitting, and interconnection paperwork to maintain full compliance.
Once your deposit is made, your project is locked into the 2025 eligibility window, even if construction finishes later.
What Happens If You Wait
Delaying could mean:
- Losing the 40 to 50 percent tax credit entirely after July 4, 2026.
- Paying higher equipment prices if FEOC rules tighten.
- Facing longer interconnection timelines and fewer installation crews.
- Missing Safe Harbor qualification and disqualifying from federal incentives.
By contrast, starting now ensures compliance, secures pricing, and locks in your project’s tax benefits before the rules change.
Why Choose CitiGreen
CitiGreen has more than a decade of experience developing commercial solar systems across Northern California.
We design, finance, and manage projects from start to finish, ensuring they meet all utility and federal standards. Our systems use premium, U.S.-made equipment that is currently FEOC compliant, and we track every policy update so your project remains protected.
When you work with CitiGreen, you are not just buying solar. You are gaining a partner who understands timelines, incentives, and compliance better than anyone in the industry.
The Bottom Line
The 40 to 50 percent federal solar tax credit will end on July 4, 2026, but the real deadline to act is now.
With FEOC rules expected to change in 2026 and utility delays already growing, signing your contract and placing your 10 percent deposit before the end of 2025 is the only way to guarantee eligibility under current incentives.
Contact CitiGreen today for a free proposal showing your savings under the 2025 incentive structure.
All you need to get started is one year of electric bills and a few weeks left in the year to secure your spot.
