Sol-Up and Commercial Solar
Get a 40% Tax Credit Right Now!
The Federal Government has enhanced its support for commercial solar installations by increasing the Investment Tax Credit to 30%, up from the previous rate of 26%. This 15% boost represents a considerable financial advantage for extensive commercial solar projects. The revised tax credit is set to last until 2032, making the present an opportune moment to take action.
Going solar is an expensive investment no matter how you slice it. But by properly claiming all available tax credits and incentives for your business’ solar project, you can cut your costs by as much as 50%
What is Bonus Depreciation
Bonus depreciation is just one of the valuable tools business owners should understand and use to reduce tax bills. It allows you to claim an immediate deduction in the first year of your solar investment rather than having to spread it out over the useful lifetime of the asset. It’s also known as the additional first-year depreciation deduction.
“Bonus depreciation is valuable to businesses because it allows them to accelerate the recovery of their costs and capital outlay,”
said Kevin Brady, a certified financial planner and vice president at WealthSpire Advisors.
“This allows them to redeploy capital faster and to other productive uses than would otherwise be the case.”
We’ll walk you through how combining the Investment Tax Credit, which allows you to claim 30% of your solar installation costs as a tax credit, with bonus depreciation and MACRS, can significantly lower your tax bill, increase your return on investment, and shrink your solar payback period all at once.
Commercial Projects
Learn About the Tax Credit
What projects are eligible for the ITC or PTC?
To be eligible for the business ITC or PTC, the solar system must be:
- Located in the United States or U.S. territories
- Use new and limited previously used equipment
- Not leased to a tax-exempt entity (e.g., a school), though tax exempt entities are eligible to receive the ITC themselves in the form of a direct payment.
Cost of Commercial Electricity vs Residential
There are a number of factors that have contributed to C&I lagging behind residential solar. For one, commercial electricity prices are historically lower, which can make the economics of solar a little trickier.
In Nevada this is no longer true .135 cents per delivered kWh
This price per kWh is high most roof top quotes are coming in at .03cents per kWh produced by solar.
When it comes to solar, 85% of your tax basis is eligible for depreciation when you combine certain tax incentives – reducing your tax bill is one of the biggest advantages of investing in a solar energy system.
Sol-Up offers an innovative and sustainable solution for commercial businesses looking to reduce their energy costs and environmental footprint. By harnessing the power of solar energy, Sol-Up provides a cost-effective and efficient way for businesses to generate their own clean energy.
This transition not only leads to significant savings on energy bills but also positions companies as leaders in environmental responsibility.
The solar power systems are tailored to meet the unique energy needs of each business, ensuring maximum efficiency and return on investment. With Sol-Up, commercial businesses can enjoy the dual benefits of reducing operational costs and contributing positively to the environment, making it a smart choice for businesses looking to invest in their future and the planet’s.
