SAVE BIG ON SOLAR WITH
COMMERCIAL TAX INCENTIVES

COMMERCIAL SOLAR TAX CREDITS & REBATES IN NORTH CAROLINA

Businesses can save 30% via the Federal Tax Credit if they act now!
Further savings via Bonus Depreciation, the USDA REAP grant, and other Federal Funding opportunities

Fuel a profitable future with solar power tax rebates

If you’ve been on the fence about switching to solar power for your commercial property or nonprofit, these solar tax incentives, rebates, and tax credits may just change your mind. Business owners and nonprofits all over NC are switching to solar, not just because it’s better for the environment but because it’s more financially feasible than ever!

Tax Credits for Commercial & Industrial Solar Panel Projects

Commercial solar energy systems provide excellent tax benefits as well. The BBB has impacted the tax schedule for Commercial solar panel system. Projects that commence construction before July 4, 2026 will qualify for the full 30% tax credit, and must be placed in service within 4 years.

IMPACTS OF The BIG BEAUTIFUL BILL For North Carolina Businesses

Policy Shift & Tax Credit Termination

Recent federal actions, including Executive Order 14315 and the One Big Beautiful Bill Act, signal a fundamental shift in U.S. energy policy, aiming to eliminate green energy subsidies and end taxpayer support for wind and solar. Consequently, the primary federal tax incentives for commercial PV solar systems – the Clean Electricity Production Credit (45Y) and the Clean Electricity Investment Credit (48E) – will terminate for any solar facility placed in service after December 31, 2027.

It is possible to qualify for the full credit beyond this date, though construction must begin by July 4, 2026, and placed in service within 4 years of starting construction to be grandfathered in.

Current Begin or “Commence Construction” requirements may become more stringent, with an executive order instructing the Treasury to issue “new and revised guidance.” Issuance is expected in mid to late August of 2025, and generally there is a 60-day buffer before implementation.

Foreign Entity & Supply Chain Restrictions

Starting in 2026, projects seeking 45Y or 48E credits will be subject to stringent “Foreign Entity of Concern” (FEOC) restrictions.

No credit will be allowed if construction begins after December 31, 2025, and the project includes “material assistance from a prohibited foreign entity”.

The credit is also denied if the taxpayer itself is a “specified foreign entity” or “foreign-influenced entity”.

For solar components, the “material assistance cost ratio” from prohibited foreign entities will be subject to increasing thresholds: 50% for 2026 sales, rising to 80-85% after December 31, 2029.

Domestic Content Requirements

Projects applying for the additional 10% domestic content bonus credit will see those content percentages for qualified facilities increase.

For projects commencing construction:

Before June 16, 2025: 40%

On or after June 16, 2025, and before January 1, 2026: 45%

During calendar year 2026: 50%

After December 31, 2026: 55%

Energy storage and other clean electricity projects

(excluding solar and wind) are subject to a phase-down schedule beginning in 2033.

For projects commencing construction:

Before December 31, 2033: Full Credit

After Jan 1, 2034: 75%

After Jan 1, 2035: 50%

After Jan 1, 2036: 0%

The solar power tax incentives you need for a financially-sound organization

Get more tax credit than ever for your solar assets

Offset the cost of your solar panel installation by taking advantage of the many federal, state, and local tax rebates on offer – while you still can. Depending on your location, USDA REAP grants are also available. Not sure what tax credit you can get?

Solar tax credit options for nonprofits and businesses in NC

Federal Solar Investment Tax Credits

Projects that commence construction before July 4, 2026 will qualify for the full credit, and must be placed in service within 4 years.

Projects that commence construction after July 4, 2026 will qualify for the full credit, and must be placed in service by December, 31st, 2027.

Depreciation Earnings

The option to deduct the full cost of business property (100% bonus depreciation) in the year it is placed in service has been permanently restored for property acquired after January 19, 2025.

USDA REAP Tax Exemption

Depending on the location of the property, the United States Department of Agriculture Rural Energy for America Program (USDA REAP) can provide up to a 50% rebate on the project costs.

Net Metering

Did you know that utility companies will buy your solar panel system’s excess energy? That means you can reduce electricity bills while also earning extra income

How you benefit from
solar energy incentive programs

Tax incentive programs give you the opportunity to embrace clean energy solutions, increase profit, future-proof your business or nonprofit, and significantly cut energy costs. Here are a few more advantages energy incentive programs offer commercial and nonprofit customers.

Benefits for commercial energy customers

Make solar installation affordable
Attract eco-conscious customers
Become energy-independent
Drastically reduce your overheads
Future-proof your business
Offset rising inflation by generating your own power

Benefits for nonprofit energy customers

Keep running costs low
Make a positive impact
Encourage donations
Impress donors
Control energy consumption
Make running on solar energy feasible

Why we are the #1 solar panel company

Frequently asked QUESTIONS

Will the federal solar tax rebate stay at 30%?

Projects that commence construction before July 4, 2026 will qualify for the full credit, and must be placed in service within 4 years.

Projects that commence construction after July 4, 2026 will qualify for the full credit, and must be placed in service by December, 31st, 2027.

Credits for Energy Storage are subject to a phase-down schedule, and projects that commence construction by December 31, 2033 will receive full credit, which is reduced to 75% of the total in 2034, 50% in 2035, and 0% in 2036.

How many years can you carry forward solar tax credits?

You can carry forward unused solar tax credits for up to five years. So, if your 30% federal tax credit is worth $5,000, and you owe $4,500 in tax credits, then you can carry the remainder forward to the next year.

Do I qualify for the federal solar tax rebate?

According to the government, businesses qualify for the 30% federal solar tax rebate if their solar PV system is:

Used by a business that pays federal income tax
Used by a business located in the US
New and not used solar energy equipment
Not used for heating up a swimming pool

If you’re a commercial property or business owner, our solar experts can help you understand what tax credits you qualify for and how to avail of them. Just give us a call!

How did the NC solar incentives come about?

North Carolina solar incentives first started as a result of House Bill 589 in 2017. With this bill, clean energy advocates created a way to incentivize individuals to choose solar in North Carolina. The bill’s purpose is to minimize switching costs by offering local rebates for individuals seeking affordable clean energy.

Are tax credits available for solar depreciation?

Yes, Bonus Depreciation Permanently Restored: On a positive note, the option to deduct the full cost of business property (100% bonus depreciation) in the year it is placed in service has been permanently restored for property acquired after January 19, 2025.

Custom-designed
solar solutions

At 8MSolar, we approach commercial solar system design with an engineering first approach. When discussing your system with 8MSolar, you will not be talking to a salesperson. You will talk to actual licensed professional engineers (PEs) who have implemented dozens of similar systems throughout the US. They will be able to help you decide if your property is a good candidate for solar and design a complex system to perfectly fit the energy needs of your business.

Commercial solar panels are substantial electrical systems that need expert engineering knowledge. Trust the licensed professional engineers at 8MSolar to give you unbiased, independent design studies and help you deliver the ideal system for your facility.

COMMERCIAL SOLAR TAX CREDITS & REBATES IN NORTH CAROLINA

Businesses can save 30% via the Federal Tax Credit if they act now!
Further savings via Bonus Depreciation, the USDA REAP grant, and other Federal Funding opportunities

Fuel a profitable future with solar power tax rebates

Tax Credits for Commercial & Industrial Solar Panel Projects