Other Solar Incentives
States and the federal government are showing businesses how important solar power is by offering several tax incentives to businesses investing sustainable energy. Here are some of the top incentives available to businesses:
Federal Business Energy Tax Credit
Businesses that install solar electric systems are eligible
to receive a tax credit for expenditures for solar technologies.
For systems placed in service by December 31, 2008, the
tax credit is 30%. For systems placed in service on January
1, 2009 or later, the credit reverts back to 10% (unless
increased by Congress). There is no maximum credit limit
for solar energy systems.
Read more about the Business Energy Tax Credit here
California Property Tax Exemption
In 2005 legislators voted to extend the exemption on property tax for solar systems installed before December 31, 2009. The entire system value is exempt from property taxes.
Read more about the California Property Tax Exemption here
Modified Accelerated Cost-Recovery System (MACRS)
Under the Modified Accelerated Cost-Recovery System (MACRS), businesses can recover investments in certain property through depreciation deductions. For solar power systems placed in service after 1986, the current MACRS property class is five years.
Read more about the MACRS here
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