Status of the Investment Tax Credit in 2025

In July 2025, Congress acted to accelerate the phase-out of the Investment Tax Credit (ITC), bonus credits and Direct Pay provision. Community-serving solar, wind, and energy storage projects are typically eligible for a 30% baseline credit, available to tax-exempt entites through Direct Pay. This fact sheet provides a timeline for the ITC eligibility of both solar and energy storage projects based on construction start dates, as well as guidelines on new foreign entity of concern (FEOC) restrictions.

To learn more, visit Clean Energy Group’s guide: What Nonprofits Need to Know About the Investment Tax Credit.