3 Solar Tax Incentives To Cash In Before They're Gone

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3 Solar Tax Incentives to Cash In Before They're Gone
Every year, commercial solar continues its meteoric rise as the world's most successful businesses continue to tap into a clean and virtually limitless energy alternative. Going solar is one of the best ways to reduce operating expenses while noticeable way to the improving bottom line performance. In spite of this developing acknowledgment and fame, various little and medium-sized entrepreneurs are still generally unconscious of the accessible duty credits that can significantly decrease the expenses of introducing their own solar energy plant.
The following is a snappy synopsis of the most used commercial solar tax incentives. Our commercial solar team can likewise assist you with deciding whether there are any extra projects accessible in your particular industry or line of business. So read on and learn how available incentive programs can help you dramatically offset your commercial solar purchase while setting you on a path toward a cleaner and a lower-cost energy future.
1. 26% Federal Tax Credit (Drops to 22% in 2021)
With the federal tax credit ...
... (ITC), you can deduct 26% of the cost of your solar energy system from your business taxes. This is a dollar-for-dollar credit toward in the annual duties the organization asserting the credit would some way or another need to pay the national government. The 26% rate decreases to 22% starting in 2021, so it's important to take advantage of the higher rates while they last.
Best of all, your business sun oriented task just should be begun in 2020 all together for your business to guarantee the full 26%. The IRS traces two techniques that can be utilized to demonstrate that a business sun oriented undertaking qualifies. The first is the Physical Work Test, which must show the beginning of physical work of a noteworthy sort. The second is the Five Percent Safe Harbor Test, which necessitates that the citizen shows that they've payed five percent or a greater amount of the absolute expense of the office in the year development starts

2. MACRS Depreciation
Every commercial solar system qualifies for the Modified Accelerated Cost Recovery System (MACRS), which is a method of depreciation in which a business’ investments are recovered, for tax purposes, over a specified period of time via annual deductions. Qualifying solar eqipment is qualified for a cost recuperation time of as long as five years.
As part of the Tax Cuts and Jobs Act of 2017, qualifying equipment and property is eligible for an increased bonus depreciation of 100% in year one. This property must be in service upto January 1, 2023.
3. Michigan State Depreciation
The state of Michigan also has a depreciation system in place that can be applied towards qualifying solar equipment. The rules for this depreciation are the same as the federal department's MACRS depreciation.
There’s never been more help available to those businesses who’d like to start offsetting the rising cost of energy with their own solar power plant. Contact our commercial solar team to find out what’s available for your business. Act now before these and other incentives expire!