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
There is a 26% Solar Investment Tax Credit (ITC) available for commercial and residential systems placed in service by 12/31/2022. The credit amount does not have a cap and is equal to 26% of the total system cost.
For commercial solar systems, businesses can claim the 26% solar investment tax credit if construction begins before December 31, 2022.
For businesses: Solar is eligible for accelerated depreciation. A business’s investments in solar property can be recovered through tax deductions.
Under the 2018 tax plan, benefits can be taken all in the 1st year and equal about 20% of solar project costs. Taken together, tax benefits for commercial solar projects reduce costs by about 50%.
Eligible rural and agricultural businesses can apply for REAP Grants.
The USDA offers a 25% grant for solar systems, with awards, for those eligible up to $100,000.
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.