Commercial Solar Roof
“With the expansion of tax breaks that are now available, there has never been a better time to install solar at your business and take advantage of the best clean energy value available.”
The Investment Tax credit for businesses is even sweeter than the residential tax credit but is much more complex. We advise you to consult with your tax professional before making any decisions regarding commercial solar tax credits. The following is a brief list of the benefits available to you:
30% commercial tax credit
50% Bonus depreciation
5 year accelerated depreciation
Increased property value appreciation
The combination of the tax credits with the accelerated depreciation will make adding a solar roof very affordable while reducing your electric bills for 25+ years
The Investment Tax Credit (ITC)
The investment tax credit (ITC) is a reduction in the overall tax liability for individuals or businesses that make investments in solar energy generation technology. Nations across the globe are competing to corner the market on solar energy technologies, and to capitalize on the job growth potential and economic gain associated with this promising industry. The ITC provides the necessary policy to ensure the growth of solar industry in the United States.
The ITC functions as a 30 percent uncapped tax credit for residential solar systems under Section 25D and commercial solar systems under Section 48 of the Internal Revenue Code. The Investment Tax Credit in effect through December 31, 2016.
Renewable energy tax policies play a vital role in creating new high-wage American jobs, spurring economic growth, promoting consumer purchases of energy efficient products, lowering energy bills for consumers and businesses, and of course reducing global warming pollution. The incentives also help the U.S. catch up with other countries on the development and deployment of renewable energy technologies.
Along with the Section 48 investment tax credit, solar property also qualifies for accelerated depreciation through Dec. 31, 2016.
Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which allows the owner of qualifying equipment including qualifying solar equipment to deduct 85 percent of their tax basis using either the commercial ITC or the Treasury Grant Program. This form of depreciation can be claimed over a five year period.