There are many incentives offered at both the state and federal level for business leaders to consider adding solar to their property. Tax credits, rebates, and incentives vary by state but here are a few options including a federal option for all companies.
- The solar investment tax credit (ITC) is a tax credit that can be claimed on federal corporate income taxes for 30% of the cost of a solar photovoltaic (PV) system that is placed in service during the tax year. Act fast as this particular incentive loses value with each year. For example a 26% incentive for systems commencing construction in 2020-2022, 22% for systems commencing construction in 2023, and 10% for systems commencing construction in 2024 or thereafter. (Source: Energy.gov)
- Many states offer a state tax credit for installing a solar energy system. This allows businesses to deduct a portion of the cost of your solar panel system from your state tax bill.
- Many businesses can “write off” the value of their solar energy system through the Modified Accelerated Cost Recovery System (MACRS), which reduces businesses’ tax burden and accelerates returns on solar investments.
- Reduced interest rate solar installment loans are available in many states.