Kokosing Solar announced on Mar. 13 that new federal deadlines and Foreign Entity of Concern (FEOC) rules will significantly impact U.S. solar project developers between 2025 and 2027. The company said these changes affect eligibility for the full 30 percent Investment Tax Credit (ITC), with several critical dates determining whether projects can secure or lose federal incentives.
The importance of these deadlines is heightened by the closure of the IRS Safe Harbor window, which required projects to begin construction by December 31, 2025, to maintain eligibility under previous sourcing requirements. Projects starting in 2026 or later must now comply with stricter FEOC standards, including sourcing thresholds that restrict materials from certain foreign entities such as China, Russia, Iran, and North Korea.
According to Kokosing Solar, FEOC thresholds will require at least 40 percent of manufactured components in solar projects to come from non-prohibited sources beginning in tax years after January 1, 2026. Projects smaller than 1.5 megawatts must use Safe Harbor provisions to remain eligible for the full credit and bonuses, while larger projects must start construction before key deadlines. The company said July 4, 2026 is a crucial date; projects started before then qualify for a four-year Continuity Safe Harbor period extending through as late as 2030.
Industry advisories confirm that December 31, 2027 is the final opportunity for new solar projects to be placed in service and still receive the ITC under current law. After this date, new projects will not qualify for Section 48E ITC unless future legislation is enacted.
Kokosing Solar features a staff that includes solar consultants, designers, financing specialists, NABCEP-certified installers and licensed electricians, according to the official website. The company promotes clean energy solutions supporting sustainable practices and community development according to its official website. It operates under the family-owned Kokosing group—one of the largest construction firms in the Midwest and Mid-Atlantic regions according to its official website—and seeks to create employment opportunities in developing clean energy according to its official website.
Kokosing Solar merges more than twenty-five years of solar installation expertise with seventy-four years of construction experience from its parent company according to its official website. The company provides residential services across multiple Ohio areas and extends commercial offerings into Pennsylvania, Indiana, Michigan and Kentucky according to its official website.
The next two years are described as one of the most time-sensitive periods ever faced by U.S. solar developers due to these regulatory changes.
