Tax Credit Info

There are many ways that companies today can benefit from “going green”, and one of the most impactful ways for your bottom line is with tax credits and incentives for solar energy, offered by both federal and state governments in an effort to spur the growth of renewable energy.

Break-Even Calculations

The best way to figure out whether a solar energy system is beneficial for your business is to calculate the break-even cost of installing the system. A solar energy system requires an upfront investment for equipment, but also helps you save money on monthly energy and utility costs. The break-even calculation can help you discover how long it will take to recoup the costs and start saving money with your new system. At Bonterra Solar, our solar hot water and solar electric (PV) systems have break-even time frames as short as two to four years, giving you as much as 28 years of free energy, and potentially hundreds of thousands of dollars in free energy.

Save Up to 30 Percent with Federal Tax Credits

Qualifying solar systems are eligible for federal Investment Tax Credits (ITC) equal to as much as 30% of the cost of the system, whether it’s solar hot water, photovoltaic (PV), or hybrid lighting. This credit is based on the entire cost of the system, including equipment and labor for installation, and has been extended through 2016 without any caps on the total credits your company can take advantage of. Visit the FAQ for the Solar Energy Industry Association (www.seia.org) for more information about what type of solar systems qualify for the federal tax credits.

Save Up to 35 Percent with State Tax Credits

In an effort to spur more renewable energy growth, many states have tax credits. In Hawaii, qualifying PV systems are eligible for tax credits as high as 35% or $500,000, whichever is lower. If you opt to get a solar water heating system, it is also eligible for tax credits up to 35% of the purchase price up to $250,000.

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Other Rebates

With the pressure on to increase the amount of energy that comes from renewable sources in the future, states like Hawaii now have incentives for businesses that implement renewable energy systems. These are available either as an upfront incentive (UI) based on the expected performance of a system as estimated by a qualified company that provides solar system certifications, or a performance-based incentive (PBI) based on the actual performance of the system as measured over time.

Your property value will increase with the addition of solar power, but many states now have property tax exemptions as high as 100% on any increase in property value that comes from solar system installation. Plus the purchase and installation of the solar system could be exempt from sales tax in your area.

Federal MACRS

Companies can also benefit from the Modified Accelerated Cost-Recovery System (MACRS), which allows you to depreciate the investment in solar equipment and recover the cost in just 5 years.

Identifying Incentives & Helping with Paperwork

If you are not a tax expert, and you’re concerned that you might miss some of the applicable tax credits and rebates available for your solar system, Bonterra Solar can help. We have consultants who can help you figure out exactly which rebates to apply for and which credits are applicable, allowing you the maximum return for your investment. We will even help you with the proper paperwork with the IRS and state tax commission.

To find out what tax credits you are eligible for, and how you can take advantage of the significant tax incentives and savings for “going green” with renewable energy sources, call Bonterra Solar today.