Clean energy grants and tax credits for small business in 2026: what is still open

The clean-energy funding map for small business changed more between mid-2025 and mid-2026 than in any year since 2022. The July 4, 2025 tax law (Public Law 119-21) put solar and wind tax credits on a deadline: a project that begins construction now must be placed in service by December 31, 2027. It ended the commercial clean vehicle credit, the EV-charger credit, and the §179D efficiency deduction for new work, and it repealed the EPA's Greenhouse Gas Reduction Fund, whose grants are now tied up in court. USDA paused its REAP energy program in April 2026. What still works: the §48E credit for solar or wind finished by the end of 2027, the same credit for storage, geothermal and other technologies, DOE's small-business R&D grants (reauthorized in April 2026), and state and utility programs. This guide shows each program's status as of September 24, 2026, with dates and sources. To see which federal energy opportunities are open now, search our Grant Map with the Dept of Energy filter; for state and utility incentives, DSIRE lists programs by state.

Program-by-program status, September 24, 2026

Before you plan a project around any program, check its row here. Several programs that anchored small-business clean-energy plans in 2024 no longer take applications.

The four federal lanes, as they stand now

Federal clean-energy money reaches small businesses through four agency lanes. Two of them narrowed sharply in 2025 and 2026. Map your project to the lane that is actually open before you draft anything.

How the §48E credit gets from 6% to 50%

The §48E base credit is 6% of project basis. Most small-business projects land at 30%, and bonuses can add up to 20 more points. Each bonus has its own compliance test; missing it loses that bonus, not the base credit. For solar and wind, all of this applies only if the system is placed in service by December 31, 2027.

The state and utility lane

With federal grants narrowed, state energy offices and utilities are now the main source of grant-style money for a small business energy project: rebates, performance incentives, and low-interest loans. Programs change often and many are funded in blocks that close when the money runs out. Examples of where to look:

• 🌞 California: the Self-Generation Incentive Program (SGIP) for storage, and utility efficiency programs.
• 🗽 New York: NY-Sun incentives for solar and NYSERDA programs for commercial efficiency and clean heating.
• 🛢️ Texas: the State Energy Conservation Office's LoanSTAR financing (mainly for public entities) and utility efficiency programs.
• 🌽 Illinois: the Adjustable Block Program, which pays for renewable energy credits from new solar.
• 🌲 Oregon: Energy Trust of Oregon incentives for efficiency and solar.
• ❄️ Massachusetts: the SMART solar incentive and Mass Save commercial efficiency programs.
• 🏦 Any state: your state green bank, if you have one, and your electric utility's commercial rebate page.

Eligibility fork: which lane does your project belong in?

Most small businesses fit more than one lane. Start with the lane that is open for your project, then add state and utility money on top.

Who this applies to: six small-business situations

Same federal landscape, very different paths depending on geography, sector, and project shape. Figures are illustrative; confirm with a tax advisor.

Preparing for REAP's return: how applications are actually scored

REAP is paused, but rural businesses that want to apply when it reopens can prepare now. The standing rule (7 CFR 4280.121) scores grant applications out of 100 points; the new rule may change these, so treat them as a guide:

• Energy generated, replaced, or saved (up to 25 points): the calculated annual energy, backed by engineering modeling.
• Commitment of funds (up to 15): how much of the rest of the project cost you have already secured.
• Previous grantees and borrowers (up to 15): points for applicants who have not received REAP before.
• Simple payback (up to 15): faster payback scores higher.
• Size of request (up to 10): smaller grant requests score higher.
• State Director and Administrator priority (up to 10): state and national priorities, such as distressed areas.
• Environmental benefits (up to 5) and existing business (up to 5).

Deadlines that matter now

• 📅 December 31, 2027: solar and wind projects that begin construction after July 4, 2026 must be placed in service by this date to claim §48E or §45Y.
• 📅 Construction after December 31, 2025: the prohibited-foreign-entity sourcing rules apply to §48E and §45Y projects (IRS Notice 2026-15).
• 📅 June 30, 2026 (passed): last date for construction to begin for §179D, and last placed-in-service date for §30C chargers.
• 📅 REAP: no date yet; USDA will announce new applications after it publishes the revised rule.
• 📅 DOE SBIR/STTR: topics are released in each year's funding notices; check DOE's SBIR page for current topics.
• 📅 Direct pay (§6417) and transfer (§6418): register the project in IRS Energy Credits Online before filing the return that claims the credit.

Five pitfalls that cost small businesses their funding

• ❌ Planning around a program that has ended. Many 2024 guides still list the EPA green-bank grants, EJ grants, Climate-Smart Commodities, §45W, and REAP as open. Check the status table above first.
• ❌ Missing the solar and wind in-service date. A commercial rooftop can take many months from contract to interconnection. Build the schedule backward from December 31, 2027.
• ❌ Buying equipment without foreign-sourcing documentation. For projects that begin construction after 2025, the credit depends on supplier information you need at purchase time.
• ❌ Relying on the old 5% safe harbor. For solar and wind, beginning construction now generally requires physical work; the 5% spending test survives only for solar of 1.5 MWac or less.
• ❌ Starting construction before a grant award. Most grant programs, including REAP when it returns, will not fund work that began before the award.

The tax-credit transfer market under §6418 is now an active monetization lane for any business that cannot use a §48E credit itself. For how this interacts with ordinary business taxable income and the at-risk rules, our friends at CeoCult cover the credit-vs-deduction layering decisions. Homeowners note: the §25D residential clean-energy credit ended for expenditures after December 31, 2025. For home-office energy questions, see DeskDeploy's home-office energy explainers.

Frequently asked questions

Bottom line

In 2026, the federal clean-energy money that is still open to a small business is mostly tax credits, not grants. For solar or wind, the §48E credit is worth 30% on most small projects, and more with bonuses, but only if the system is in service by December 31, 2027, so start now or plan on state and utility money instead. Storage, geothermal and other technologies keep the credit longer. REAP is paused, the EPA green-bank and EJ grants are ended or in court, and several business credits ended in 2025 and 2026. DOE SBIR/STTR remains the grant route for technology developers. For broader federal small-business funding context that spans non-energy lanes too, see our federal grants for startups and USDA rural business grants guides.

1. IRS Notice 2025-42 (beginning of construction and the December 31, 2027 placed-in-service rule for wind and solar).
2. IRS Notice 2026-15 (prohibited foreign entity material-assistance rules).
3. IRS FAQ on credits changed by Public Law 119-21 (§45W, §30C, §179D, §25C, §25D end dates).
4. Federal Register 2026-07332 (REAP funding notice rescinded).
5. EPA Greenhouse Gas Reduction Fund (program status).
6. DOE SBIR/STTR program (reauthorization, current topics).
7. IRS elective pay and transferability (§6417 and §6418 registration).
8. DSIRE Database of State Incentives for Renewables and Efficiency (state and utility programs).