Save your Solar Project from the Big Beautiful Bill

NewsLegislation
Written By Sarah Haak

The recent passage of the “Big, Beautiful Bill” certainly changes things in the commercial solar world. We at Coral Reef are closely monitoring this fluid situation, and while there is still a lot of uncertainty, here’s what we do know: The window to preserve your incentives is closing quickly. If you’re even thinking about solar for your business, the time to act is now.

What’s Changing?

H.R.1 (we’ll call it “the bill”) was officially signed into law on July 3rd. On July 7th, President Trump issued an executive order instructing the U.S. Treasury to “issue new guidance” around Safe Harbor requirements within 45 days of the budget bill’s signing - a drastic shift from the original guidance deadline of December 31, 2026.

That means we’re in a very short, very temporary grace period.

As the bill stands today (July 9th), safe harboring is fairly straightforward - put 5% down and start construction by July of 2026 to reserve your full 30% Investment Tax Credit (ITC).

But depending on what the new guidelines say, you could be looking at any number of possibilities, such as higher down payments, stricter interconnection requirements, tighter timelines, or worse - the elimination of the safe harbor option altogether. This is all speculation of course, but it’s safe to say the new regulations will be much stricter than they are now.

What Should You Do?

You have two options:

  1. Physical Work Test
    You can maintain eligibility by beginning construction by July 3, 2026. This means real progress on-site: materials delivered, mobilization underway, and physical work started. Permits and interconnection approvals are usually required in advance, so you need to be moving now to stay on track.

  2. Safe Harbor (Financial Test)
    Lock in the ITC by meeting the financial commitment (5% now, possibly more later). This is currently the simplest route — but the bar is likely about to rise.

In either scenario, we urge you to take action and start your interconnection process immediately. We would encourage this even if the rules weren’t changing because this is the single most important step you can take right now to preserve your ITC.

Why?

  • Interconnection can take 6–9 months.

  • Without it, you risk missing the chance to start construction in time.

  • Projects that aren’t moving forward now could become ineligible for the full 30% ITC.

You don’t need to place a deposit today — but you do need to start due diligence so your project can meet whichever requirements land in September.

Why It Matters

With the Big Beautiful Bill now law, the ITC is set to phase down or disappear altogether by 2029. If you wait to act, you could be facing:

  • Higher upfront costs

  • Longer timelines due to permitting and utility delays

  • Lost eligibility for federal tax incentives

Bottom line? This is your window. It’s still open — but barely.

Let’s Talk

Our team at Coral Reef is here to help you navigate this shifting terrain. If you have a project on the back burner or you’re exploring solar for the first time, now is the time to move it forward.

Reach out today to start the due diligence process and preserve your full ITC eligibility while it’s still achievable.

Sarah Haak