Going solar is already a smart move for your business. But what if we told you there’s a simple way to stack even more savings on top of the 30% federal tax credit you already get?
If you choose U.S.-made solar panels, inverters, racking, and other key system parts, your business may qualify for an extra 10% tax credit under the Domestic Content Bonus. That’s a huge win—and it’s exactly what the team at California Solar is helping clients unlock right now.
Let’s talk about how it works, what qualifies, and why this bonus could be a game changer for your next commercial solar project.
What Is the Domestic Content Bonus?
Because of the Inflation Reduction Act (IRA), the base federal Investment Tax Credit (ITC)applied to commercial solar projects is 30%. But if you meet certain sourcing requirements by using American-made components, your project can receive an additional 10% credit—bringing your total to 40% before any other adders.
It’s part of a larger push to boost clean energy jobs and manufacturing in the U.S. But from a business perspective, it’s all about keeping more money in your pocket.
What Counts as “Domestic”?
To qualify for the bonus, at least 45% of your solar system’s materials must be made in the U.S. These include:
- Solar panels (modules)
- Inverters
- Racking systems
- Electrical components like transformers and combiner boxes
In 2025, the threshold is 45%, and it will increase to 50% in 2026. Don’t worry – California Solar keeps up-to-date with these numbers so you don’t have to.
Why It Pays to Plan Ahead
The tricky part? There’s a limited supply of qualifying components—and growing demand. As more companies race to meet the deadline for solar tax credits before they phase down, American-made parts are going fast and prices are going up.
That’s why early planning is key. If you wait too long, you may still be able to go solar—but you might miss out on this extra 10%.
Our team at California Solar works directly with suppliers to lock in qualifying materials early in the process. That way, your project stays on track and on budget.
Do the Math: What an Extra 10% Looks Like
Let’s say your solar installation costs $500,000. Here’s the difference domestic content can make:
- Base ITC (30%): $150,000
- Domestic Content Bonus (10%): $50,000
- Total Credit: $200,000
That’s $50,000 in tax savings just for using U.S.-made components. Add in the energy community bonus and depreciation benefits; the impact grows even bigger.
What if You Combine Bonuses?
Here’s the kicker: this 10% isn’t the only bonus out there. If your business is located in an Energy Community—like most of Southern California—you can stack on another 10% tax credit
That means:
- 30% Federal ITC
- +10% Domestic Content
- +10% Energy Community
= 50% tax credit before you factor in depreciation.
Why Choose California Solar?
At California Solar, we specialize in commercial solar and battery projects. Expert installs and guidance for businesses, nonprofits, and institutions across the state.
Here’s what makes us different:
- We help you qualify – Our team checks your location, system design, and materials to ensure you’re eligible for every available credit.
- We do the paperwork – We’ll document your use of domestic components for IRS compliance.
- We source smart – We prioritize vendors and manufacturers who meet federal requirements for U.S. content.
- We show you the ROI – Our custom savings reports lay out every penny you’ll save—before you commit to anything.
Final Thought: Made in America Makes a Difference
Going solar already shows your business is thinking ahead. Choosing American-made components? That’s just smart business. With federal support tied to domestic manufacturing, the bonus isn’t just about patriotism—it’s about profits. And right now, that 10% bump is sitting there, ready to be claimed. Let California Solar help you grab it. We’ll walk you through every step, source the right materials, and make sure your project checks all the boxes—on time and on budget.
Ready to see how much you could save with U.S.-made solar? Contact California Solar today and let’s get started.