Commercial Solar Tax Credits, Rebates, & Incentives
With more than a decade of experience, Sunetric can easily work with you to identify all available federal, state, and local tax incentives.
Photovoltaic solar projects are frequently eligible for government incentives and subsidies such as tax credits, tax rebates, grants, accelerated depreciation (MACRS), and Solar Renewable Energy Credits (SRECs). The combined savings can often offset 70% of the cost of installation.
A Helping Hand
As with all tax forms and programs, understanding and navigation can be difficult— that’s what we’re here for. Our specialists will organize, process, and track your applications so that you can focus on your business.
Tax incentive processing can be a time-consuming process. In many cases, we can reduce the cost of your installation up front so that you can avoid waiting for incentives to kick in.
Get In Touch
We know this process can be confusing, and the availability and details of different incentives changes frequently. For up-to-date information and to get any of your questions answered, please contact us. We’d love to hear what you’ve got in mind.
Federal Business Solar Tax Credit
The federal government allows businesses to take a credit worth 30% of the installed cost of solar photovoltaic systems through December 31, 2016.
The five-year accelerated depreciation allowance for solar property is permanent.
- Covers 30% of installed system costs.
- Applies to installed cost of system and up to five years of included maintenance.
- Available for tax year the system is ‘placed in service.’
- Unused portion can be rolled over to subsequent tax years.
- Utilities are excluded.
Information & Tax Forms
Solar Accelerated Depreciation (Modified Accelerated Cost-Recovery Systems — MACRS)
Both the Federal Government and the State of Hawaii allow solar systems to be fully deducted over a five year lifetime. The schedule for this ‘five year property’ actually unfolds over six years to account for the fact that systems are not operational from the first day of Year 1. The value of the accelerated depreciation schedule depends on the tax rate of the entity purchasing the credits. Under MACRS, solar equipment is treated for depreciation purposes as follows:
Depreciation is front-loaded in 2013 relative to previous years because solar equipment qualifies for 2013 ‘bonus’ depreciation of 50%. This bonus reduces the remaining depreciation schedule by half in Years 1 through 6. In 2009, the depreciation schedule is the same as in earlier years, however, when the federal tax credit falls to 10% the depreciable basis of the project rises from 85% to 95% of the installed cost.
Please Note: Neither Sunetric nor its employees are tax professionals. The tax information provided herein is provided as a guide only; please consult your tax advisor for official, professional guidance.