Tax Credits and Incentive Programs
The federal government allows business owners to obtain a tax credit based on the total system cost. Depending on the year, credit can range from 30% to 10%. This credit can be carried back 1-year or carried forward for 20 years.
Investment Tax Credit (ITC)
The federal government allows business owners to write off the total system cost, less 50% of the received ITC. Under BONUS depreciation the depreciation can be taken all in Year-1, or under MACRS, over the 5-year schedule.
Some states have cash payments and on-bill credit incentives to further reduce the costs of solar. SolBid will ensure that all incentives, both federal and state, have been identified for each project and are provided in the financial analysis.
Depreciation Tax Write-Off