There are many financial incentives available for commercial solar installations. And thanks to the American Recovery and Reinvestment Act of 2009, some of these incentives have been modified to make them even more attractive for companies and organizations who want to reduce their carbon footprint and improve the bottom line.
Business Energy Investment Tax Credit (ITC)The business energy investment tax credit is equal to 30% of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Passive solar systems and solar pool-heating systems are not eligible. Taxpayers can take this credit OR receive a grant from the US Treasury Department.
U.S. Department of Treasury - Renewable Energy GrantsThe renewable energy grant is equal to 30% of the basis of the property for solar energy. Eligible solar-energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Passive solar systems and solar pool-heating systems are not eligible. Taxpayers can accept this grant OR take advantage of the Investment Tax Credit.
Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2009)Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The 5-year schedule for most types of solar, geothermal, and wind property has been in place since 1986. The federal Economic Stimulus Act of 2008, enacted in February 2008, included a 50% bonus depreciation provision for eligible renewable-energy systems acquired and placed in service in 2008. This provision was extended (retroactively to the entire 2009 tax year) under the same terms by The American Recovery and Reinvestment Act of 2009 enacted in February 2009.
Federal Grant ProgramsTribal Energy Program Grant
U.S. Department of Treasury - Renewable Energy Grants
USDA - Rural Energy for America Program (REAP) Grants
Federal Loan Programs
U.S. Department of Energy - Loan Guarantee Program
USDA - Rural Energy for America Program (REAP) Loan Guarantees
Always consult with your tax advisor before making decisions on a solar thermal installation for your business.
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