If you’re running a business in California, you could be sitting on a goldmine of clean energy savings—and not even know it. Thanks to recent updates in federal tax law, many businesses now qualify for up to a 50% solar tax credit. The catch? You need to be in an Energy Community to get the full benefit. The good news: most of Southern California qualifies.
At California Solar, we’re helping businesses like yours uncover hidden savings by checking their Energy Community status. Here’s what that means—and why you should care.
What’s an Energy Community?
Energy Communities are regions defined by the U.S. Department of Energy where the economy has been historically tied to fossil fuels. These areas often include:
- Counties with closed coal plants or retired fossil fuel jobs
- Zones with high unemployment linked to energy shifts
- Brownfield sites or areas undergoing environmental cleanups
These communities are now being rewarded for shifting to clean energy, and that reward comes in the form of a 10% federal tax credit bonus on top of the base 30% Investment Tax Credit (ITC).
Recent Blog: Made in America Pays: How Domestic Solar Components Can Save Your Business an Extra 10%
How Does the 50% Credit Work?
The 30% ITC applies to most commercial solar and battery storage projects. But if your business is located in an Energy Community and you use U.S.-made components, here’s what you could get:
- 30% base tax credit
- +10% Domestic Content bonus
- +10% Energy Community bonus
That’s 50% off your system cost—plus 100% first-year depreciation.
Is Your Business in an Energy Community?
Here’s the wild part: many California businesses are located in qualifying zones and don’t even know it.
The Department of Energy released an interactive Energy Community map (we can help you check it), and it includes areas like:
- Los Angeles County
- Orange County
- San Diego County
- Ventura County
- San Bernardino County
- Riverside County
- Kern County
If your commercial property is located in an Energy Community, you’re already eligible for the extra 10%Federal tax credit.
What You Need to Qualify
There’s no special application for the Energy Community bonus. If your building address is in a qualifying area, you get the benefit. But here’s what you do need:
- A project that starts by July 3rd 2026 or completes by 12/31/2027
- Basic documentation to confirm site location and eligibility
- IRS Form 3468 – Investment Credit
The experts at California Solar handle this part for you. We’ll run your address, verify your eligibility, and apply every qualifying incentive to your project.
Let’s Talk Numbers
Say your solar and battery project costs $600,000. Here’s how it could break down:
- 30% ITC = $180,000
- 10% Energy Community bonus = $60,000
- 10% Domestic Content bonus = $60,000
- Total Tax Credit = $300,000
That’s half the system paid for—before depreciation and utility savings even kick in.
Why California Solar?
At California Solar, we focus on commercial solar and battery projects.
Here’s what we bring to the table:
- Site eligibility checks – We confirm your Energy Community status up front
- Incentive assistance – We’ll help your tax preparer with tax credit documentation
- Top-tier design and installation – Built to maximize ROI and long-term performance
- Battery storage solutions – Add-ons that qualify for the same tax credits
We work with nonprofits, manufacturers, schools, farms, and every type of business in between. If you’ve got a roof or a lot, we’ll make it work for you.
Don’t Miss the Window
This opportunity won’t last forever. The 50% ITC disappears soon. If you’re in an Energy Community, you need to act before time runs out. Let’s find out if your business qualifies—and how much you can save.
The OBBB is destroying solar:
- Solar projects that start within 12 months of the OBBB are eligible for
- the full 30% ITC (plus any bonuses); these projects must be completed in 4-years
- Projects that do not start by 7/3/2026 can utilize 100% of the ITC if placed in service by 12/31/2027
- Projects that do not begin by 7/3/2026 and are placed in service after 12/31/2027 are ineligible for the ITC
Contact California Solar today for a free Energy Community check and custom savings estimate. We’ll handle the hard stuff. You enjoy the savings.
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