PolicyMay 4, 2026·8 min read
IRA, ITC, and Solar Policy: What Landlords Need to Know Going Into 2026
The ITC is safe through 2032. Direct-pay is expanded. Labor rules got teeth. A clean summary for property owners.
What's in force
- 30% ITC through 2032, stepping down after.
- Direct-pay for tax-exempt entities (HOAs, non-profits, some tribal and municipal owners).
- Transferability — for-profit owners without enough tax appetite can sell the credit to another taxpayer.
- Domestic-content bonus (+10%) for projects using US-manufactured modules and steel.
- Low-income community bonus (+10 to +20%) for projects in qualifying census tracts.
- Prevailing wage + apprenticeship — required to earn the full 30%; otherwise credit drops to 6%.
What changed in 2025
- Domestic-content thresholds tightened slightly.
- IRS Rev. Proc. 2025-XX clarified apprenticeship documentation — most reputable installers now handle this in-house.
- Additional low-income allocation for multifamily properties in HUD-defined difficult-development areas.
The 2026 calendar
No major solar-specific legislation expected. State-level PUC rate cases are the more meaningful policy variable — California, New York, and Massachusetts all have active solar-adjacent proceedings.
Practical takeaway
If you've been waiting for policy clarity, you have it. Every major economic support for rental-property solar is in place through the end of the decade.
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Next step
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