Commercial Savings
Savings opportunities and tax incentives.
Solar power systems offer businesses and property owners two significant tax incentives. In fact, you can receive up to a 50% discount on the total cost of the system. When developing your corporate tax strategy, keep in mind the following incentives, which are available for commercial solar systems installed in the U.S.
Business Energy Investment Tax Credit (ITC)
Solar photovoltaic (PV) systems installed by businesses are eligible for an Investment Tax Credit (ITC), which can be used to directly offset federal tax liabilities. For 20 years, you can roll over the tax credit if your tax liability exceeds your credit. A 26% tax credit of the cost of the total PV system is available to commercial projects starting construction through 2023.
Federal Depreciation
Businesses may depreciate certain types of property under the federal Modified Cost Recovery System (MACRS). The MACRS system establishes a lifespan over which the property can be depreciated. This incentive allows the company to capture 100% of its depreciation deduction in the first year of operation.
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