Federal Investment Tax Credit – the federal ITC is a dollar for dollar tax credit worth 30% of the price tag on your solar energy system. This incentive is set to start declining after 2019 according to the following schedule
2022 and onward: 10% for commercial only. There is no credit for residential systems from 2022 onward.
Accelerated Depreciation (MACRS) – For commercial solar, you can write off or depreciate the value of the solar array following standard MACRS depreciation tables. The depreciable basis is determined from the total cost of the solar PV system after subtracting out one-half the value of the federal tax credit. You may also be able to benefit from bonus depreciation and depreciate the full basis in year 1. Please consult your tax professional for details.
Utility Incentives – Your local utility may offer an incentive to help you cover a portion of the cost of going solar. In some cases, these programs can cover up to 30% of the total cost. Your Axium Solar sales representative will help you understand the incentives available to you and Axium Solar will do all the heavy lifting to help you get the maximum benefit from these programs.
Grant Programs – If you are a rural small business, then you may be able to benefit from a federal grant program through the USDA Rural Energy For America Program (REAP) (https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency). If you are a public entity in the state of Texas, then other federal grants such as those offered through the State Energy Conservation Office (SECO), may be available.
Contact Axium Solar to learn more.