Big Changes Are Coming for Solar Tax Credits

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Here’s What Farmers Need to Know

There’s never a dull moment in the solar industry, and the latest twist is a big one for farmers.

President Donald Trump’s “Big Beautiful Bill” has major implications for federal solar tax credits. If you’ve been thinking about solar for your farm, now’s the time to act.

HERE’S WHAT’S CHANGING

The 30% federal tax credit for residential solar ends Dec. 31, 2025. No extensions, no exceptions. Your system must be fully installed and operational by that date to qualify.

Farmers and other businesses have more time, but also more complexity.

You can still claim the full tax credit through 2027 if you begin construction (or safe harbor) before the end of 2025. That means either starting physical work or putting 5% down on your project costs.

Safe harboring gives you until 2029 to finish the installation and still lock in the credit.

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BUT HERE’S THE KICKER:

Starting in 2026, new “Foreign Entity of Concern” (FEOC) rules will limit what equipment qualifies. And a recent executive order from Trump is expected to bring stricter requirements than what is in the bill for the FEOC requirements and safe-harboring rules. The U.S. Department of Treasury has until Aug. 21, 2025, to release its new guidance.

HERE’S WHAT IT MEANS FOR YOU

The bottom line: Farmers and other businesses will want to safe harbor their project before the end of 2025 to lock in today’s tax credits and safe-harbor rules.

While the pending guidance from Trump’s executive order is unknown, utilizing the tax credits by safe harboring your project will likely become more difficult if you wait until 2026 to start.

If you want to take advantage of the federal tax credit while it’s still available, don’t wait. Get started now while the tax savings are strong and the deadlines are still within reach. Don’t miss your window. Visit www.ParadiseEnergy.com/solar-tax-credits-expiring or call 877-851- 9269 to schedule your free solar assessment.