"Solar energy construction has increased significantly in recent years across the United States, with some forecasters expecting another rise of at least 75% for 2024. This growth in solar projects results in good measure from existing and additional tax credits continued and implemented through the Inflation Reduction Act (IRA). These credits, however, do not apply to any and all solar projects. Instead, the amount of such credits varies according to both the materials used and the labor supplied to the project under a detailed set of regulations. Naturally, developers are turning to knowledgeable and experienced builders to make sure construction meets these regulatory requirements to maximize tax credit eligibility. As a result, such requirements are finding their way into solar energy project contracts and associated subcontracts. For general contractors and subcontractors, alike, they need to review carefully contractual obligations meant to satisfy solar energy project tax credit requirements. Failing to meet these contractual terms could make contractors liable for an owner’s resulting additional tax burden for up to ten years after the project ends."
