Safe Harbor Your Project with Trackers 

With shifting ITC rules and the OBBB Act’s phase-out, developers face a narrow window to safe harbor projects. Nevados’ FEOC-compliant TRACE Trackers offer a reliable path to lock in tax credits, meet “Start Construction” rules, and avoid costly delays. Act now to secure incentives and gain time to finalize design, financing, and compliance.
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POST DATE
July 12, 2025
By Editorial Team

Over the past several months, the solar industry has been scrambling to interpret shifting guidance around federal tax credits. Now that the OBBB Act has officially passed, there is an accelerated phase-out of the ITC programs but, developers have a narrow window of opportunity to safe harbor projects under the current rules. To complicate matters further, a recent executive order mandates a review of the “start of construction” safe harbor provisions by August 18, meaning the rules themselves could soon change. For developers, acting quickly is critical to secure tax benefits and avoid costly surprise.

To maintain eligibility for the current Investment Tax Credit (ITC) rates, projects must:

  • “Start Construction” within 12 months (from July 3, 2025).  This is known as “Safe Harboring”
  • Placed in service within 4 years of “Start Construction”

For developers looking to lock in those incentives, safe harboring is an urgent opportunity —and Nevados is ready to help.  We have researched language in the Bill, sought legal advice to craft a safe harboring strategy for our customers. Given the 4 year safe harboring window, using trackers to safe harbor makes sense as those components don’t become obsolete over a long warehousing plan, a risk that is higher with modules, for example. The definition of “Start Construction” is tied into two approved ways of safe harboring a project:

  • The 5% Test – Spend 5% of the project’s fair market value (FMV) on equipment. This starts the construction clock once funds are transferred, and manufacturing is complete within 105 days.
  • The Physical Work Test – Take physical steps (like manufacturing or site prep) to show project initiation. One accepted version: purchasing 10% of required trackers, storing them, and transferring title to the developer with 3rd-party audit confirmation.  Given the likelihood of the imminent language change defining “Start Construction”, this method is likely not feasible for customers to achieve in a very short window.

Another layer of complexity to this is the requirement for avoiding components sourced from Foreign Entities of Concern (FEOCs)—including companies tied to China, Russia, North Korea, or Iran.  These requirements become active in 2026 and another reason to actively safe harbor projects now. It’s worth noting that either way, Nevados is fully FEOC compliant and can provide supporting documents.

By safe harboring now, developers can:

  • Lock in compliance with current FEOC guidance
  • Avoid future disqualifications from changing supply chain rules
  • Maintain eligibility for the Energy Community Adder, Domestic Content Bonus and low-income community credits for well over 50% of your project

Nevados has built a full strategy around each of the above methods and can happily discuss with customers on paths that match their needs.  We can manufacture product, store and transfer title within 105 days to support.

Safe harboring not only protects your project’s financial structure — it gives your team time and certainty to finalize designs, secure financing, and stay compliant. With Nevados’ TRACE All Terrain Tracker and built-in safe harbor support, you can confidently move forward, even on challenging sites (and ZERO GRADING).

Products & Services
Chief Commercial Officer

Jenya Meydbray

Jenya is the Chief Commercial Officer of Nevados, prior to that he co-founded PVEL in 2010 and served as CEO for the past dozen years. 

He developed the first extended reliability and performance test protocols for the downstream PV industry as well as innovative methods of evaluating PV performance for power plant level risk assessment and mitigation. 

Prior to founding PVEL, Jenya was the Senior Quality and Reliability Engineer at SunPower where he designed accelerated test methods for high-efficiency solar cells and modules. Jenya began his career at NASA Ames Research Center’s hyper-gravity facilities. He also served as VP of Technology for Cypress Creek Renewables, a utility-scale project developer.

DIRECTOR OF FINANCE

Rick Baldini

Rick has over 18 years of finance experience across several industries including financial services, insurance, real estate, and construction.  Rick is experienced in building, leading, and advising companies through complex restructurings, business expansion and product development.  

Prior to Nevados, Rick was the CFO for Link Real Estate & Urban Land Co, a real estate investment firm, that Rick led to become the fastest growing private company in Central Ohio.  Rick has also been successful in structuring a multi-million-dollar licensing deal with a public company while CFO at Global Administration Management, a boutique consulting firm in the insurance industry.

Rick is a graduate of the University of Arizona where he received a B.S. in Finance and Marketing.