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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.
The Investment Tax Credit (ITC) under Section 48E provides a 30% credit for commercial solar projects that meet prevailing wage and apprenticeship requirements. Without these requirements, the credit is only 6%. Additional bonuses can increase the total to 60-70%.
Base credit of 30% with prevailing wage + apprenticeship compliance
Reduced to 6% without prevailing wage requirements
Applies to solar panels, inverters, racking, battery storage, and installation labor
Can be stacked with domestic content (+10%), energy community (+10%), and low-income (+10-20%) bonuses
Maximum stacked rate up to 70% of total project cost
Direct Pay available for tax-exempt entities
Commercial, industrial, and institutional solar installations
Systems must be placed in service by the taxpayer
New construction or significant renovation of existing systems
System must remain in service for at least 5 years (recapture rules)
Prevailing wage: Pay locally determined prevailing wages during construction
Apprenticeship: Use registered apprentices for 15% of total labor hours
Begin construction before legislative deadlines
File IRS Form 3468 with federal tax return
IRA signed into law, establishing Section 48E
IRS issues prevailing wage and apprenticeship guidance
Domestic content and energy community bonuses finalized
FEOC battery restrictions take effect
CRITICAL: Begin construction before July 4 for IRA rules
5-year depreciation + 20% bonus (2026)
Modified Accelerated Cost Recovery System (MACRS) allows businesses to depreciate commercial solar equipment over 5 years, with 20% bonus depreciation in 2026.
+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.
The Investment Tax Credit (ITC) under Section 48E provides a 30% credit for commercial solar projects that meet prevailing wage and apprenticeship requirements. Without these requirements, the credit is only 6%. Additional bonuses can increase the total to 60-70%.
Precios específicos del sitio con cálculos exactos de incentivos. Sin obligación.