For nonprofit organizations exploring or investing in solar energy systems, time has suddenly become the most critical factor in securing substantial federal tax benefits. The One Big Beautiful Bill Act has fundamentally altered the landscape for solar investment tax credits, creating urgent deadlines.
New Timing Realities
Projects that begin construction on or before July 4, 2026, may remain eligible under the credit regime. Projects that begin construction after July 4, 2026, must be placed in service by December 31, 2027, to qualify.
Direct Pay Process
- Install and place the solar property in service
- Create accounts on the IRS Energy Credits Online portal
- Submit detailed project information for review
- After receiving approval and registration number, file Form 990-T
Action Steps for Nonprofit Leaders
Organizations with solar projects already in service should begin the registration process immediately. For projects still in development, focus on ensuring construction begins before the July 4, 2026, deadline while simultaneously preparing registration materials.
