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NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
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Stack up to 70% in federal tax credits. MACRS depreciation. Direct Pay for tax-exempt entities. The most generous incentives in solar history.
30%
Base ITC
Up to 70%
Max Stacked ITC
20% in 2026
MACRS Bonus
Tax-exempt entities
Direct Pay
The 2026 ITC under Section 48E provides a 30% base credit (with prevailing wage/apprenticeship), stackable with +10% domestic content, +10% energy community, and +10-20% low-income bonuses for up to 70% total. MACRS 5-year depreciation with 100% first-year bonus (permanent under the OBBBA) adds significant additional tax savings. Tax-exempt entities can use Direct Pay for cash payments. Begin construction on or before July 4, 2026 to lock in the full §48E timing pathway; later starts still qualify but must be placed in service by December 31, 2027.
30% (6% without prevailing wage)
The Section 48E Investment Tax Credit provides a 30% credit on commercial solar installations that meet prevailing wage and apprenticeship requirements. This is the cornerstone federal incentive for commercial solar.
5-year MACRS + 100% first-year bonus depreciation
Modified Accelerated Cost Recovery System (MACRS) lets businesses depreciate commercial solar over 5 years. Under the OBBBA, 100% first-year bonus depreciation was permanently restored for equipment placed in service after January 19, 2025.
+10% bonus
An additional 10% ITC bonus for commercial solar projects that use US-manufactured components meeting specific domestic content thresholds.
+10% bonus
An additional 10% ITC bonus for commercial solar projects located in designated energy communities, including brownfields, coal closure areas, and fossil fuel employment areas.
Up to 70% cash payment
Direct Pay allows tax-exempt entities including schools, municipalities, nonprofits, and tribal entities to receive the ITC as a direct cash payment from the IRS.
Compliance requirement
Foreign Entity of Concern (FEOC) restrictions prohibit the use of Chinese, Russian, Iranian, and North Korean components in ITC-eligible solar projects. Understanding compliance is critical for maintaining tax credit eligibility.
Up to $1,220,000 deduction (2026)
Section 179 allows businesses to deduct the full cost of qualifying commercial solar equipment in the year it is placed in service, rather than depreciating it over multiple years.
1 days until July 4, 2026 deadline
Projects must begin construction before this date for current IRA rules
FEOC battery restrictions take effect
Battery storage components from FEOC entities no longer qualify for ITC
IRS finalizes domestic content guidance
Clear rules for calculating manufactured product percentages
OBBBA restores 100% MACRS bonus depreciation (permanent)
IRC §168(k) permanently set to 100% for property placed in service after Jan 19, 2025; the prior phasedown toward 0% is reversed
Section 48E begin-construction lock-in date
Begin construction on or before this date to lock in the full timing pathway (placed in service through ~2030); projects beginning after still qualify but generally must be placed in service by Dec 31, 2027
FEOC threshold increases to 50%
Higher domestic/non-FEOC content required for manufactured products
The maximum stacked ITC is up to 70% of total project cost: 30% base ITC + 10% domestic content + 10% energy community + 20% low-income community bonus. Plus MACRS 5-year depreciation adds another 15-20% in tax savings.
Our team helps you navigate ITC stacking, MACRS depreciation, and state incentives to minimize your net cost.