UPDATE: The July 4, 2026, construction-start deadline has already passed. Here's what applies to a new project starting now:
The credit itself
Still 30% (Section 48E, Clean Electricity Investment Credit) — base rate is 6%, but jumps to 30% if the project meets prevailing wage and apprenticeship requirements, or is under 1 MW. Most commercial-scale projects will hit 30% one way or another.
The deadline that now matters
Because construction is starting after July 4, 2026, there's no continuity safe harbor extension. The project must be fully placed in service by December 31, 2027 to qualify at all — no exceptions, no 4-year runway like pre-July 4 projects got.
Foreign Entity of Concern (FEOC) restrictions — now mandatory
Any project beginning construction after July 4, 2026 must comply with FEOC rules limiting components sourced from prohibited foreign entities (including Chinese-controlled manufacturers). Specific guidance is still being finalized by IRS/Treasury, but using non-compliant components can disqualify the entire project's credit, not just reduce it.
Bonus adders still available
Domestic Content Bonus: +2% base / +10% alternative
Energy Community Bonus: +2% / +10%
Low-Income Community Bonus: for projects under 5 MW in qualifying areas
These can push total credit value to 40–50%+, same as before — FEOC and the tighter deadline are the main things that changed for new projects, not the bonus structure.
Practical implication
There's no more "safe harbor to buy time" play for projects that haven't started — that window closed July 4, 2026. Anything starting now needs a realistic path to being placed in service by end of 2027, and needs its supply chain checked against FEOC rules before locking in equipment sourcing.
One caveat: FEOC implementation guidance is still evolving, so it's worth confirming current IRS guidance (or a tax professional) before finalizing sourcing decisions on a new project.