Safe harbor rules: What clean energy developers need to know
The guidance eliminates the 5% safe harbor test for solar facilities larger than 1.5 MWac and all wind facilities. Solar facilities that are 1.5 MW and smaller may still use the 5% safe harbor test
Safe Harbor Strategies for Securing the Solar Investment Tax Credit
We successfully achieved safe harbor for 4 projects in 2019, assuring our clients could maximize their tax benefit. Contact one of our non-commissioned solar experts today to start a
Navigating the Domestic Content Requirements Under Evolving
The new notice, Notice 2025-08, provides a "First Updated Elective Safe Harbor," modifying a previous safe harbor provided by the IRS. This Holland & Knight alert summaries the First
What does "safe harboring" mean for the solar industry?
Safe harboring allows companies to demonstrate a good-faith effort at starting a solar project to lock in the applicable tax credits in place that year. Once they secure the credits, they have four years to complete the
Q&A on the Inflation Reduction Act | Norton Rose Fulbright
A2: Yes, starting in 2023, modifications to existing batteries should qualify for the stand-alone storage credit as long as the modification increases the capacity of the battery
IRS Notice 2025-42 Leaves Beginning of Construction Guidance
5% Safe Harbor for Low-Output Solar Facilities The Notice provides for a 5% safe harbor test that appears to be designed to accommodate rooftop and community solar
Safe harbor simplifies energy credit bonus calculation
Notice 2024-21 provides a safe harbor with simplified calculations for ground solar, rooftop solar, land-based wind, and electric battery storage projects. The notices offers a
Safe Harbor Strategies for Solar Projects in 2019 and 2020
In sum, you will be ready to safe harbor your solar projects this year and next by following a few simple steps—all to reduce risk down the road: Estimate capital costs to help
Don''t Capsize your Solar Tax Credit Safe Harbor Strategy | How
If you are planning to develop solar in 2019 and beyond and are looking to leverage the IRS Safe Harbor rule, you should be implementing an insurance program that addresses the loss of tax
US solar sector races to safe harbor equipment ahead
US solar developers face a narrowing window to safe harbor equipment and secure tax credits, as the Senate weighs a bill that would repeal the Investment and Production Tax Credits for renewables
Notice 2025-8: Updated elective safe harbor for
Specifically, Notice 2025-8 provides a variety of updates to the safe harbor tables, including: Solar: The updated tables update cost percentages, make certain adjustments to the characterizations of applicable project
美国加州部署的这三个太阳能+储能项目引发关注-微电网-储能项
在十年前,装机容量超过500kW的电池储能系统在全球都是比较罕见的,并且意义重大,通常会得到行业媒体关注。而在五六年前,世界各国部署兆瓦级电池储能系统屡见不
Safe Harbor Program
Thanks to the Safe Harbor provision, businesses can still get 26% tax credit if they invest at least 5% of the total system cost prior to the end of 2020. By investing 5% up-front, Safe Harbor allows commercial solar projects to receive
IRS simplifies IRA domestic content requirements for
The New Elective Safe Harbor lists the tables showing percentages of production costs for solar, land-based wind, and battery electric storage system components, simplifying compliance calculations. For
Domestic Content Safe Harbor cost percentages 2025
The U.S. Department of the Treasury released additional guidance on the Inflation Reduction Act''s domestic content tax credit bonus for solar and battery energy storage projects. The guidance today builds on the
Notice 2018-59: Construction begin date for section 48 credit
Section 6 of Notice 2018-59 discusses the continuity requirement and provides a safe harbor for satisfying this requirement. The notice also includes rules for transferring energy property as
ITC Safe Harbor – Frequently Asked Questions
The safe harbor is likely satisfied. Applying the look-through rule, the EPC contractor''s purchase of the inverters pursuant to a binding contract in 2019 (even if prior to the
What does "safe harboring" mean for the solar industry?
Safe harboring allows companies to demonstrate a good-faith effort at starting a solar project to lock in the applicable tax credits in place that year. Once they secure the
SOLAR: Experts discuss safe harboring equipment ahead of
The other strategy, which includes procuring at least 5% of equipment needed for a project, is usually the more popular safe harbor method for companies. Fryatt said solar modules are
Beginning of Construction for Purposes of the Renewable
Alternatively, a taxpayer may establish the beginning of construction by meeting the safe harbor provided in section 5 (Safe Harbor). Although a taxpayer may satisfy both methods, a taxpayer
New IRS Safe Harbor Notice Provides Needed Relief and Clarity for Solar
Notice 2021-41 extends the safe harbor rules under IRS Notice 2018-59 from four years to six years for projects that started construction from 2016-2019, and from four
6 FAQs about [2019 safe harbor solar battery 5]
What is a “safe harbor” for solar projects?
The “safe harbor” provision makes this possible. Safe harboring allows companies to demonstrate a good-faith effort at starting a solar project to lock in the applicable tax credits in place that year. Once they secure the credits, they have four years to complete the project — known as the “continuity safe harbor.”
Is it time to'safe harbor' your solar projects?
In 2016, it was wind. Now it’s solar. With new guidance from the IRS, it’s time to “safe harbor” your projects. Last year, the United States Internal Revenue Service (IRS) issued guidance that clarified the future of the Investment Tax Credit (ITC) for US solar projects.
What is a 5 percent safe harbor?
A “five percent (5%) safe harbor”—a taxpayer may establish the beginning of construction by meeting a safe harbor based on having paid or incurred 5% or more of the total cost of the energy property as set forth in section 5 of Notice 2018-59.
How does safe harboring work for Solar Contractors?
Safe harboring looks different for residential solar contractors than for utility-scale contractors. Residential contractors can claim these bonus credits for third-party owned systems, and will typically stockpile inverters or solar panels to secure the safe harbor.
Why is the solar industry gearing up to safe harbor equipment?
Following this example, the solar industry is gearing up to safe harbor equipment to qualify later projects for the ITC. This move will also allow time to continue development and potentially avoid solar tariffs imposed on imports now through 2021.
When will the continuity safe harbor be applied?
Thus, the Continuity Safe Harbor will be applied beginning in 2018, not in 2019. The Physical Work Test requires that a taxpayer begin physical work of a significant nature. This test focuses on the nature of the work performed, not the amount or the cost.