Tax Incentives
Solar is not out of reach, in fact, with government tax credits and incentives, you’re closer than you think! The Delta Solar team is here to guide you through each step of your solar purchase, including guidance on incentives you can claim on your new system.
Tax Credit, Depreciation & Grant Opportunities
A federal Investment Tax Credit (ITC) equal to 30% of the total solar system cost is available for commercial and residential systems. There is no cap on the credit value.
For businesses, solar is eligible for accelerated depreciation. A business can depreciate 100% of the system cost minus half of the tax credit value. This equates to 85% of the system cost being depreciable in the first year of operation (100%-30%/2). Taken together, these tax benefits (ITC + depreciation) reduce costs for commercial solar projects by about 50% and can be recouped in the first year of operation.
Additionally, eligible rural and agricultural businesses can apply for a USDA Rural Energy for America Program (REAP) grant. Through a competitive grant application process, USDA awards grants for up to 50% of eligible project costs, up to $1 million dollars. Delta Solar provides step-by-step assistance with the entire application process.
A tax credit is a dollar-for-dollar reduction of the income tax you owe. $1 credit = $1 less you pay in taxes. It’s that simple.
Be sure to ask your accountant about Bonus Depreciation and of accelerated depreciation that may be taken on your installation.