GameChange Solar Guides Clients Through New IRS Tax Credit Physical Work Test Regulations

GameChange Solar Navigates New IRS Investment Tax Credit Regulations

On August 25, 2025, GameChange Solar, recognized as a premier global provider of solar tracking and fixed-tilt systems, made headlines by assisting clients in understanding and adapting to the updated IRS regulations concerning the federal Investment Tax Credit (ITC). This shift includes the recent elimination of the 5% Safe Harbor, which necessitates developers to meet the Physical Work Test to validate the commencement of construction for solar projects.

According to IRS Notice 2025-42, the focus is now on the nature of physical work conducted, which can be performed either on-site or off-site. On-site tasks typically involve the installation of equipment designed to support solar modules at the project site, while off-site work includes the manufacturing of critical components like torque tubes and purlins, contingent upon these components being custom-fabricated and not simply drawn from a standard inventory.

Phillip Vyhanek, President and COO of GameChange Solar, emphasized the importance of understanding these regulatory changes, stating that the IRS continues to view solar trackers and mounting equipment as essential for energy projects. He articulated that the newfound emphasis on customization means developers must demonstrate that components are unique and tailored specifically for each project.

"Notice 2025-42 underscores the necessity for meticulous planning. Since generic materials won't qualify, developers must ensure they present evidence of custom fabrication of crucial equipment," he remarked. This attention to detail in project components is now more vital than ever, as the removal of blanket approvals under the old regulation could pose challenges to project viability.

For solar developers and project owners, these changes underline the importance of collaborating with partners capable of providing tailored, project-specific components. GameChange Solar's innovative track designs and flexible manufacturing processes uniquely position them to assist contractors in satisfying the Physical Work Test while ensuring that design remains adaptable. This is essential as clients seek to leverage incentives such as the ITC effectively.

GameChange Solar is committed to facilitating compliance with the IRS's new guidelines by providing customized fabrication services and robust support throughout the project lifecycle. "Our capabilities in delivering project-specific tubes and structural elements will be invaluable to our customers navigating the new regulations set forth under Notice 2025-42," added Vyhanek.

As one of the leading solar tracker solution providers, GameChange Solar has a proven track record, boasting delivery of over 43 GW of systems globally. Their solutions are designed to enhance the efficiency of solar installations while safeguarding the system against adverse weather impacts, ensuring optimal performance over time.

As solar energy continues to gain momentum globally, understanding IRS rules and effective planning will be essential for developers aiming to take full advantage of the Investment Tax Credit. GameChange Solar stands ready to assist in this transition, ensuring projects can move forward efficiently while maximizing financial incentives.

For further insights and details on their offerings, interested parties can visit GameChange Solar's official website.

_Note: This communication does not serve as federal tax guidance. Individuals seeking tax benefits should consult their tax advisors to understand the necessary requirements._