What taxes will the solar container industry pay

A major change is coming for commercial solar projects — and it could determine whether your company qualifies for the federal 30% Investment Tax Credit (ITC) for solar or loses it entirely. Starting January 1, 2026, new Foreign Entity of Concern (FEOC) rules take effect. SEIA also fought for successful passage of many other important tax measures in the IRA, including adding energy storage to the ITC, creating solar manufacturing tax credits, and ensuring interconnection costs are a qualified expense for solar projects under 5 MWac. The ITC is a one-time credit against income tax that is based on the amount invested in a facility (rather than on the amount of electricity produced and sold). The Inflation Reduction Act provided wind and solar power with lucrative tax credits that are essentially uncapped and available without limit. The new legislation introduces complexities around FEOCs, requiring careful review to ensure compliance and mitigate potential risks. Any system installed after this year won’t qualify for the discount that’s helped millions of households cut thousands off their installation costs.