Tax Benefits of Solar Energy
MACRS
ITC
Modified Accelerated Cost-Recovery System
The Consolidated Appropriations Act extended the “placed in service” deadline for bonus depreciation. Equipment placed in service could qualify for the following bonus depreciations:
- BEFORE January 1, 2018 = 50% bonus depreciation
- During 2018 = 40% bonus depreciation
- During 2019 = 30% bonus depreciation
NOW is the best time to purchase!
Business Energy Investment Tax Credit
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of commercial and utility (Section 48) investors in solar energy property.
A tax credit is a dollar-for-dollar reduction in the income taxes that a company claiming the credit would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. The ITC is equal to 30 percent of the basis that is invested in eligible property which have commenced construction through the end of 2018.
The expiration date for solar technologies is based on when construction begins. For all other technologies, the expiration date is based on when the system is placed in service (fully installed and being used for its intended purpose).
MACRS
Modified Accelerated Cost-Recovery System
The Consolidated Appropriations Act extended the “placed in service” deadline for bonus depreciation. Equipment placed in service could qualify for the following bonus depreciations:
BEFORE January 1, 2018 =
50% bonus depreciation
During 2018 =
40% bonus depreciation
During 2019 =
30% bonus depreciation
NOW is the best time to purchase!
ITC
Business Energy Investment Tax Credit
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of commercial and utility (Section 48) investors in solar energy property.
A tax credit is a dollar-for-dollar reduction in the income taxes that a company claiming the credit would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. The ITC is equal to 30 percent of the basis that is invested in eligible property which have commenced construction through the end of 2018.
The expiration date for solar technologies is based on when construction begins. For all other technologies, the expiration date is based on when the system is placed in service (fully installed and being used for its intended purpose).
MACRS
Modified Accelerated Cost-Recovery System
The Consolidated Appropriations Act extended the “placed in service” deadline for bonus depreciation. Equipment placed in service could qualify for the following bonus depreciations:
BEFORE January 1, 2018 =
50% bonus depreciation
During 2018 =
40% bonus depreciation
During 2019 =
30% bonus depreciation
NOW is the best time to purchase!
ITC
Business Energy Investment Tax Credit
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of commercial and utility (Section 48) investors in solar energy property.
A tax credit is a dollar-for-dollar reduction in the income taxes that a company claiming the credit would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. The ITC is equal to 30 percent of the basis that is invested in eligible property which have commenced construction through the end of 2018.
The expiration date for solar technologies is based on when construction begins. For all other technologies, the expiration date is based on when the system is placed in service (fully installed and being used for its intended purpose).
[DISCLAIMER]: Comments on this Website are not intended to be absolute. Please consult with an accountant or tax official regarding specific savings and credits available to you.