If you’ve been thinking about adding solar lighting to your property, now is the time to act. The federal Solar Investment Tax Credit (ITC)—which allows businesses to claim a 30% tax credit on qualifying solar installations—will sunset for new projects beginning after July 2026.
That means every day you wait could be money left on the table. For commercial property owners, municipalities, and organizations looking to reduce energy costs while moving toward sustainability goals, solar lighting is one of the easiest and most affordable ways to qualify for the ITC before it begins to phase out.
At LED Living, we have A Solar Living division, and we’re here to help you understand how the ITC works—and how to take full advantage of it before the deadline.
What Is the Solar ITC, and How Does It Work?
The Solar Investment Tax Credit (ITC) is a federal incentive that allows you to deduct 30% of your total solar project cost—including equipment, installation, and related expenses—from your federal taxes.
Here’s how it works in practice:
- Let’s say your company installs $100,000 worth of solar lighting.
- You’ll receive a $30,000 tax credit that can directly offset your tax liability.
- If your company owes less than $30,000 in taxes, the remaining amount can roll over to the following year.
Businesses typically claim this credit by filing IRS Forms 3800 and 3468 with their annual tax return.
The credit has been instrumental in helping businesses and cities across the U.S. adopt cleaner, more cost-efficient technologies. But the policy is changing. Under current legislation, the credit will begin phasing down for new projects that start after mid-2026, so the time to begin your installation process is now.
Why Solar Lighting Is the Smartest Way to Claim Your Credit
Many people think the ITC only applies to rooftop solar panels, but solar lighting systems also qualify – including our Solar Living collection.
That’s great news for property managers, schools, and municipalities that want to go solar without committing to a large-scale infrastructure project. Solar lighting is one of the fastest, simplest, and most flexible ways to participate in the ITC program.
Because solar lights are self-contained—requiring no trenching, wiring, or grid connection—installation is straightforward, and documentation is simple. These are exactly the kinds of projects the IRS considers “construction start” under the ITC guidelines, making them an ideal fit for businesses that want to secure their savings before the credit expires.
How to Secure Your Solar ITC Before It Sunsets
To take advantage of the 30% credit, your project must begin construction before July 4, 2026. “Begin construction” doesn’t necessarily mean completion—it can include steps such as signing a contract, making a deposit, or taking delivery of materials.
Here’s how to stay on track:
- Start early. The closer we get to the deadline, the more backlogs you’ll see in supply and installation scheduling.
- Work with a qualified supplier. Partner with companies like LED Living Technology that can provide compliant invoices and documentation for your tax filing.
- Keep your records organized. Save purchase orders, delivery receipts, and installation photos. Your accountant will need proof that your project began before the eligibility cutoff.
- Consult a tax advisor. Every business’s financial situation is different, and professional guidance ensures you’re maximizing your available benefits.
By acting now, you can lock in your 30% credit and start enjoying the financial and environmental benefits of solar lighting long before the deadline hits.
Common Questions About the Solar ITC
Do solar lights qualify for the tax credit?
Yes—standalone solar lighting systems, like solar area lights, are eligible as long as they generate and use their own solar power.
What forms do I need to file?
Typically, businesses use IRS Form 3468 to claim the Investment Tax Credit and Form 3800 to report it on their return.
Can the credit roll over?
Yes. If a business owes less in taxes than your total credit amount, the remainder can be applied to next year’s tax liability.
What if I install both solar and LED lighting?
You can claim the ITC for the solar portion of the project. LED lighting on its own does not qualify, but it often pairs perfectly with solar lighting upgrades for maximum energy reduction and qualifies for other incentives (like utility rebates).
The Bottom Line: Don’t Miss the Opportunity
The 30% Solar Investment Tax Credit remains one of the most valuable federal incentives for energy-efficient upgrades—but time is running out.
By starting your solar lighting project now, you’ll:
- Cut 30% off the total project cost through tax credits
- Cut ongoing electricity bills dramatically
- Reduce maintenance and installation expenses
- Demonstrate commitment to sustainability
The Solar Living division of LED Living Technology is committed to helping businesses and communities transition to cleaner, smarter lighting solutions. Our solar products are built for performance, backed by solid warranties, and supported by experts who can guide you every step of the way—from design and documentation to installation and post-purchase support.
Ready to Start?
Visit our Solar Living Collection to explore qualifying products and contact your local rep to request a custom quote. Find out how much you can save before the Solar ITC window closes.
About Our Company
At LED Living, we're dedicated to illuminating small, medium, and large commercial spaces with high-quality, high-efficiency LED lighting solutions. Our Mission is to provide user-friendly lights that are easier to install than other options on the market.