The latest rules from the U.S. Department of Treasury change “safe harbor” eligibility requirements for solar projects seeking the 30% Investment Tax Credit.
Many planned solar projects do not pencil out without the 30% Investment Tax Credit, so securing it will be critical to many projects moving forward.
In the past, a test showing a 5% spend on the project was enough to secure tax credits via a safe harbor. Now, projects are required to show “physical work of a significant nature.”
The revised safe harbor guidance requires physical work to be completed by the end of this year for projects containing Foreign Entity of Concern (FEOC) equipment, with an additional compliance window from January 1 to July 4, 2026 for all other projects.
Since many projects are still awaiting utility, environmental, or local approvals to begin construction, this restriction creates major challenges for developers to maintain realistic timelines while receiving the tax credit, said GameChange Solar.
GameChange Solar, a solar tracker provider, said its balance-of-systems (BOS) transformers provide a pathway to secure safe harbor. Transformers are necessary system components that must be individualized for each project, qualifying their manufacture under the physical work provision through the remote start of construction, said the company. Transformer decisions are usually determined early in the project cycle, allowing projects to advance while approvals are still pending, it said.
GameChange Solar said in Q2 2025, its BOS transformer solutions safe-harbored 76 projects totaling over 380 MW of solar capacity. The company said it has a dedicated team to time-stamp and certify all work for IRS compliance, with the capacity for 250 more projects this year and up to 600 projects in 2026.
“Especially with the additional start-of-work requirements, developers face uncertainty around financial predictability and viability,” said Phil Vyhanek, President and COO of GameChange BOS. “Having a BOS supplier like GameChange manufacture a customized solution creates a reliable, documented pathway to preserve tax credit eligibility and keep projects moving forward.”
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