If your business is considering going solar, timing has never been more critical. The federal 30% Investment Tax Credit (ITC) for commercial solar is officially scheduled to phase out after 2027. Companies that delay risk losing access to these savings, potentially leaving hundreds of thousands to millions of dollars on the table.

At Mars Energy, we help commercial and industrial property owners transition to solar with clarity, speed, and confidence. Here’s what your business needs to know about the upcoming deadline and how you can still take full advantage.

What Is the Investment Tax Credit (ITC)?

The ITC is a 30% federal tax credit for solar energy systems on commercial properties. It directly reduces your tax liability based on the total cost of your system, including equipment, labor, and permitting.

This tax credit has helped drive major growth in commercial solar, but without further legislation, it will begin phasing out after 2027.

What Happens After 2027?

Unless Congress extends the credit, projects that have not started by December 31, 2027 may no longer qualify for the full 30% ITC. The longer you wait, the harder it becomes to meet IRS requirements for eligibility. Rising material costs, permitting backlogs, and labor shortages could further delay your project and jeopardize your ability to claim the credit.

Waiting too long could mean missing out on this valuable incentive altogether.

What Does “Start of Construction” Mean for Solar Projects?

To qualify for the 30% ITC, your project must begin construction by the end of 2027. Under current IRS guidelines, that can mean spending at least 5% of the total project cost on solar equipment, known as the safe harbor method, or beginning physical work of a significant nature at the site.

There are proposals to raise the safe harbor requirement to 51% of materials paid for or delivered. If that happens, many power purchase agreement (PPA) deals and investor-backed projects could face major disruptions unless planning begins early.

How Mars Energy Helps You Meet the Deadline

Our team specializes in helping commercial property owners complete solar projects on tight timelines while maximizing tax benefits. Whether you own a single property or manage a national portfolio, we handle the details so your project qualifies in time.

We provide portfolio and site evaluations to determine solar potential and savings.

We create project schedules that align with IRS tax credit deadlines and requirements.

We structure financing options including ownership, leases, and PPAs designed to preserve ITC eligibility.

We coordinate permitting and procurement to ensure materials and approvals are secured quickly and efficiently.

Time Is Running Out. Don’t Miss the 30% Credit

The ITC has helped thousands of businesses cut operating costs and increase property value. But this opportunity will not last much longer. If you’re thinking about solar before 2027, now is the time to act.

Delaying could mean losing millions in tax savings, missing out on investor support, or getting caught in a year-end rush that limits options and increases costs.