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Businesses Act Soon to Take Advantage
of Clean Energy Tax Incentives

As a business owner, understanding upcoming tax deadlines is critical—not just for compliance, but for maximizing cash flow and long-term savings. One of the largest tax opportunities of 2026 is approaching fast, and many business owners don’t even realize it yet.

Several major clean energy tax incentives are scheduled to expire in the first half of 2026. If you’re considering building upgrades, renovations, or installing EV chargers, this guide breaks down what’s available, how it works, and why timing matters.

Let’s walk through it step by step.

The June 30, 2026 Construction Deadline

To qualify for these incentives, construction must begin by June 30, 2026. This doesn’t mean getting quotes or signing contracts—it means actual construction start.

If you miss this deadline, the incentives either disappear or are significantly reduced.

Immediate Deductions for Building Upgrades

Businesses making qualifying energy-efficient improvements may be eligible for immediate tax deductions of up to nearly $6 per square foot.

Qualifying improvements can include:

  • Lighting upgrades

  • HVAC and ventilation systems

  • Building envelope improvements (walls, insulation, windows)

Unlike depreciation spread over many years, these deductions can often be taken right away, improving cash flow in the same tax year.

EV Charger and Refueling Property Tax Credits

If your business installs EV chargers or other qualifying refueling property, you may be eligible for tax credits of up to $100,000 per location.

These credits apply to:

  • Commercial EV charging stations

  • Refueling property placed in service at business locations

  • Certain upgrades tied to clean transportation infrastructure

For businesses with multiple locations, the credit potential can be substantial.

The Catch: Strict IRS Requirements

These incentives are powerful—but only if you follow the rules. To receive the full deduction or credit, the IRS requires compliance with:

  • Construction start-date rules

  • Prevailing wage requirements

  • Apprenticeship standards

  • Proper documentation and certification

Failing to meet even one requirement can result in reduced benefits or complete disqualification.

Example Scenario

Imagine a business owner planning a 20,000-square-foot renovation.

If the upgrades qualify, the owner could potentially deduct nearly $120,000 immediately using energy-efficiency deductions. On top of that, installing EV chargers at the property could generate up to $100,000 in tax credits.

That’s over $200,000 in combined tax incentives—but only if construction begins before June 30, 2026 and all requirements are met.

Why Timing Matters

Most business owners wait until tax season to think about deductions—but by then, it’s too late. These incentives require advance planning, contractor coordination, and wage compliance before construction starts.

Waiting until 2026 to look into this could mean losing access to incentives that were fully available just months earlier.

Why This Matters for Business Owners

These clean energy incentives aren’t just about sustainability—they’re about keeping more of your money while upgrading your property and future-proofing your business.

Business owners who plan early can:

  • Improve cash flow

  • Reduce tax liability

  • Increase property value

  • Avoid rushed, costly mistakes

Conclusion

The first half of 2026 brings one of the most important tax deadlines for business owners in years. If you’re planning renovations, building upgrades, or EV charger installations, acting early can unlock significant deductions and credits—but waiting could make them disappear.

🎧 Listen to the latest episode of the Guerrero CPA Podcast to get the full breakdown before these incentives expire.