Georgia Homeowners: What the One Big Beautiful Bill Means for Your Solar Tax Credit

The One Big Beautiful Bill Act (OBBBA) passed on July 4, 2025, and has made waves across industries, and the solar industry is no exception.

Homeowners and businesses are asking what this means for the federal solar tax credit and their plans to go solar. If you’ve been thinking about solar, now is the time to act.

We break down the facts for residential solar tax credit and commercial solar tax credit in Georgia, with reliable sources.

What This Means For You

Residential Solar Installations in Georgia:

• Systems must be fully installed by December 31, 2025 solar deadline, to qualify for the 30% credit on solar (IRS OBBBA FAQ).
• The credit is based on installation completion, not Permission to Operate (PTO) from the utility (IRS Form 5695 Instructions).
• Leasing and PPA options remain eligible until 2027 (Solar.com).

Solar For Commercial And Utility-Scale Projects in Georgia:

• Start construction by July 4, 2026 deadline, to preserve utility-scale solar tax credit eligibility (Sidley).
• Use IRS “beginning of construction” rules to extend solar project timelines (ProjectFinance.Law).
• Audit supply chains to comply with foreign component restrictions (LW.com).

Highlights / Detailed Overview

Residential Solar Tax Credit (IRC §25D)

Note: IRC §25D is the section of the federal tax code that governs the residential solar tax credit. It sets the rules for homeowners claiming the 30% credit on solar systems installed at their primary or secondary homes. The One Big Beautiful Bill Act updates the deadlines and eligibility within this section, but the section itself existed before OBBBA.

• Credit Expiration: The 30% federal tax credit ends for expenditures made after December 31, 2025. Expenditures count when installation is complete, not when PTO is issued (IRS OBBBA FAQ).
• Completed Installation vs. PTO: System installation rules focus on completion, not utility approval (IRS Form 5695 Instructions).
• Leases and PPAs: Third-party-owned systems remain eligible under business credit rules until December 31, 2027 (Solar.com).

Commercial and Utility-Scale Solar (Sections 45Y / 48E)

Note: Sections 45Y and 48E refer to parts of the federal tax code that govern commercial clean energy credit and utility-scale solar tax credits. Section 48E covers business-owned solar projects, including third-party systems like leases and PPAs, while Section 45Y covers larger commercial or utility-scale projects. The One Big Beautiful Bill Act (OBBBA) updates deadlines and rules within these sections, but the sections themselves existed before the bill.

• Credit Expiration: Tax credits for commercial and utility-scale solar end for systems placed in service after December 31, 2027, unless construction begins by the July 4, 2026 deadline (Sidley).
• Beginning of Construction: Projects started in 2025 or 2026 can complete by 2029–2030 under IRS rules (solar installation timeline from ProjectFinance.Law).
• Foreign Entity Restrictions: Compliance with foreign component and financing restrictions is required, especially regarding Chinese manufacturers (LW.com).

Why Georgia Residents Should Act On Solar Now

Delaying solar installation in Georgia could mean losing the residential solar incentives and commercial solar incentives available under the federal solar policy. Installing now ensures you secure the maximum federal clean energy incentives before the solar tax expiration and begin saving on energy costs immediately.