One Number That Can Zero Out Your Entire Storage Tax Credit

Many people building out energy storage projects in 2026 are focused on the headline numbers: the 30% base ITC, the domestic content adder, the energy community bonus. It’s true that math is genuinely exciting.

It’s worth noting that there’s a lesser-known compliance filter sitting underneath all of it that can zero out every dollar of credit you’ve earned, and it doesn’t get nearly enough attention. It’s called the MACR, the Material Assistance Cost Ratio, and instructor Wes Kennedy breaks it down in this clip from HeatSpring’s Energy Storage Finance course.

This is one of the most practically useful explainers we’ve seen on the subject. Check out the clip, then find the full course linked below.

Key takeaways from Wes:

• The MACR isn’t like the ITC adders. It’s a mandatory threshold, and it’s a cliff. Fall short and you lose the entire credit. Clear it by a fraction of a percent and you keep everything.
• A few things worth noting as you think through procurement and project planning:
• The thresholds increase every year. In 2026, 55% of your project cost must be domestic or non-FEOC. That rises to 60% in 2027 for energy storage.
• The look-through rule goes deeper than the manufacturer. Even if you buy from a US-based supplier, cells or components sourced from a FEOC country still count against you. Supply chain documentation matters all the way down.
• Certification from your supplier is your protection. Get it in writing.

Want the full picture?

This clip is from Wes Kennedy’s Energy Storage Finance course, which covers project economics, ITC structuring, depreciation strategy, state incentives, and more. 

You can enroll directly, or access Wes’s full Comprehensive Solar Plus Storage course and 15 more premium courses through HeatSpring PRO.