SOLAR: THE OBBBA CLIFF

Solar contractors at $1M to $5M net about 7 percent on the SPM 48-trade benchmark dataset, rising to 13 percent by $25M to $50M; the CFOS net profit target is 10.5 percent before taxes at $1M to $5M, the trade average plus 3.5 points. In 2026-2027 you can't separate margin from policy. It depends on which clock each project is on and whether the credit documentation holds. Every net profit figure here is gross margin minus overhead, stated before taxes, the same basis CFMA reports net income on.

The OBBBA, signed July 4, 2025, ended the residential 25D credit on December 31, 2025. It put commercial 48E on a deadline. Projects that begin construction by July 4, 2026 keep the 30 percent credit with a four-year completion window. Later starts must be fully in service by December 31, 2027 to claim anything. Check the current federal and state posture before you quote. The safe-harbor rules themselves have been litigated mid-year.

Through the begin-construction tests. That means physical work of a significant nature (on-site, or off-site under binding contract) or, where it applies, the 5 percent cost safe harbor. You also need continuity documentation through completion. A court vacated the IRS notice that limited the 5 percent path in mid-2026, and an appeal is expected. So the physical-work record is the evidence that lasts. Keep it to audit standard. It's worth 30 percent of the project.

Three tiers, and which one you are in depends on how much of the work you want off your desk. On Core we build your plan every month and your team does the work: job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a monthly meeting that ends in decisions, while your bookkeeper keeps doing the books. On Strategic we build the plan, track it and adjust it every month: our team does the bookkeeping and the bank reconciliations, and the job costing and WIP software is set up and managed for you, on your own online software or ours. On Platinum we manage the money side for you every week: our team handles your bills and receivables the way an in-house controller would, and you approve every payment. We don't do payroll.

Sixty days. We migrate your books back to the start of your last taxable year and build your job costing structure from scratch, and on Strategic and Platinum we set up the job costing and WIP software too. You're fully up and working in two months. The onboarding fee is one time, the same for every tier, and set by your revenue band.