Take Action to Avoid Major Price Increase on Projects Over 1 Megawatt

The Inflation Reduction Act keeps the advantageous 30% tax credit in place but adds new requirements for projects over 1MW, including mandating prevailing wage on these projects. Otherwise projects will face a reduction of the credit from 30% to 6%.

Safe Harbor allows customers to preserve a tax credit during a given year by beginning construction on their solar project. As a solar buyer, when deciding the start date of your construction, considering the Safe Harbor strategy could save you money. There are two ways you can utilize safe harbor: incur a minimum of 5% of the total project cost or start work of a significant nature on the project.

Participation in Safe Harbor requires 5% or more of the total cost of the facility to be incurred before January 29, 2023. Continuous progress towards completion is also required but JKB handles all of this for you and have safe harbored scores of projects over the past decade.  

Costs paid or incurred by a contractor to perform solar work are considered for Safe Harbor, as long as they contribute to the total cost of the facility. Project timelines can be adjusted to your schedule but must be completed in 4 years.

If you are considering when to start your solar project or have any questions about how Safe Harbor could save you money, call us at 209.668.5303!