Tax Credits, Rebates and Incentives
Commercial
Federal Business Tax Credit of 30%
A federal business tax credit of 30% of the net system cost is available for solar electric (PV) systems,
wind energy systems with wind turbines less than 100 kW and solar water heating systems.
Treasury Energy Grant
Commercial projects may decide to apply for a Treasury Energy Grant in lieu of the investment tax credit
(ITC). The grant is paid out by the Treasury department within 60 days of the project completion.
Federal 5 Year Accelerated Depreciation Schedule
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover the
cost of a solar electric PV, wind turbine and solar hot water heating systems on an accelerated 5-year
schedule.
The owner is entitled to deduct 50% of the adjusted basis of the property in the first year of operation.
The remaining 50% of the adjusted basis of the property is depreciated over the ordinary depreciation
schedule.
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