Are There Federal Tax Credits for Commercial Solar in Texas in 2025?

If your business in Texas is exploring commercial solar, one of the first questions you will ask is: Can we still claim a federal tax credit in 2025? The short answer is yes, but with new deadlines and conditions. Understanding how the federal tax credits apply in 2025 will help you time your project, plan financing correctly, and maximise the benefit. Here is what you need to know, and how Big Sun Solar can help you take full advantage.

1. What federal tax credits are applicable for commercial solar?

The primary federal incentive for commercial solar projects is the Investment Tax Credit, often called the ITC. For business owned solar systems, this is generally a 30 percent tax credit of the qualifying cost of the solar equipment and installation.

In Texas, as elsewhere in the United States, this tax credit applies regardless of state borders, so yes, your Texas industrial or commercial solar project is eligible for this federal benefit if structured appropriately.

2. What is new in 2025, key deadlines and requirements

While the 30 percent credit remains available for commercial solar in 2025, there are important timing and construction start rules you must be aware of

Projects must begin physical construction by July 4, 2026, or be placed in service by December 31, 2027 in order to qualify for the full 30 percent credit.

The law signed in July 2025, often referred to as the One Big Beautiful Bill, tightened eligibility rules, including supply chain rules related to Foreign Entities of Concern and sourcing rules, which also impact commercial solar tax credit qualification.

Because of the new rules, timing your project is critical. Even though the credit is still 30 percent, delaying the start may jeopardize eligibility or increase complexity.

3. How this matters for Texas commercial or warehouse solar projects

For a commercial installation in Texas, for example on an industrial warehouse in Houston, here is how you should interpret the federal tax credit

If you plan to own the solar system so you can claim the tax credit, begin the project design, procurement, permitting, and construction with the goal of starting physical work by July 4, 2026.

Make sure you meet the safe harbour criteria, which might include beginning construction or making a binding contract plus some spending, so you can lock in eligibility.

Your tax credit benefit of 30 percent significantly improves your return on investment, reduces net installed cost, and enhances cash flow modelling, which is critical for industrial projects.

Because Texas has large flat roofs, strong daytime usage, and favourable energy profiles for warehouses, combining state and local incentives with the federal ITC can make a big difference in your project economics.

4. Why Big Sun Solar is the right partner for leveraging this tax credit

We specialise in commercial and industrial installations in Texas, and we stay up to date on federal tax credit rules and deadlines.

Our turnkey EPC approach, which stands for Engineering, Procurement, and Construction, ensures you meet the construction start and safe harbour requirements needed to secure the federal credit.

We will build your financial model to show how the 30 percent tax credit impacts your net cost, payback, and internal rate of return.

We coordinate structural, electrical, permitting, and interconnection so you begin physical work in time and preserve eligibility.

With our experience in large warehouse rooftops in Houston and surrounding markets, we know how to optimise system sizing, cost, and incentives to maximise your benefit.

5. Next steps, how to claim and plan for the tax credit

Engage our team early to evaluate your site and your timeline for construction start in relation to the July 2026 deadline.

Review your ownership and financing plan, since you must own the system or be in a position to claim the credit in order to receive the full value of the 30 percent.

Model your project economics including the 30 percent federal tax credit, any accelerated depreciation, and your expected solar production.

Proceed with turnkey EPC planning. Big Sun Solar will handle engineering, procurement, permitting, and construction, and will help ensure you meet the deadline for eligibility.

Monitor compliance. As federal rules tighten, we will help ensure your equipment, sourcing, installation sequence, and paperwork align with IRS requirements.

If your company is considering commercial solar in Texas in 2025 and wants to fully leverage federal tax credits, the time is now. Big Sun Solar is ready to guide you from planning through execution so you capture that 30 percent tax credit, optimise your costs, and build strong long term value from solar.

Contact Big Sun Solar to schedule a consultation and receive a custom tax credit and savings analysis for your project.

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