The Government just knocked another 10% off your solar system
This is probably not going to last for long as the House is trying to close this loophole, and even cut back the Solar Investment Tax Credit still further, but a solar system now qualifies for up to 77% in tax incentives!
The 10% Energy Community Bonus Tax Credit is now available to businesses in the following regions in California and Nevada:
California:
Kern County
Los Angeles County (Los Angeles‐Long Beach‐Anaheim)
Orange County
Solano County
Sutter County
Ventura County (Oxnard‐Thousand Oaks‐Ventura)
Yuba County
Nevada:
Churchill County
Douglas County
Elko County
Esmeralda County
Eureka County
Humboldt County
Lander County
Lincoln County
Lyon County
Mineral County
Nye County
Pershing County
White Pine County
SOLAR TAX CREDITS in 2023
+ 30% Solar Investment Tax Credit
+ 10% Energy Community Bonus Tax Credit
+ 10% US-Made Equipment
+ 10% Prevailing Wage & Apprentice Requirements
+ 17% Bonus Depreciation
Where do I sign?
So get 77% of your costs back and 80% off your electric bill?
Tax season is a really good time to remember that making the switch to better energy is not just as simple as it’s ever been, your business is effectively paid handsomely to do it!
It’s widely understood that a business’s monthly electricity bill can be reduced by up to 80%, but it’s surprising how few realize the true value of the tax deductions available to fund it.
In 2022, the Investment Tax Credit (ITC) was restored to 30% and when taken into account alongside the other deductions available, a clean energy system can be installed with discounts up to 65%!
So much of this money is left on the shelf when tax season rolls around.
Could it be time for your business to revisit clean energy? Call us on 323.393.0375 to see how we can help.
Investment Tax Credit (ITC)
in a nutshell
Restored and Extended: The Inflation Reduction Act, signed into law in August 2022, restored the Solar Investment Tax Credit to 30% and extended the timeline for another 10 years until 2032.
And extended again!: The new 10% Energy Community Bonus Tax Credit brings the total value of the ITC alone to 40%.
The solar+storage equipment expenses included in the ITC have expanded: Now, energy storage devices that have a capacity rating of 3 kilowatt hours or greater are included. This includes stand-alone storage.
Apply to the past, present, or future: It can be used to pay for the previous year’s tax bill, your current tax bill, or any tax bill for the next 20 years!
The ITC accounts for approximately half of the tax deductions for solar projects: The total deductions can now add up to 77%, so you can pay approximately 23% of the cost of a revenue generating solar project.
Eligibility for the ITC is based on a “commence construction” standard. Taxpayers must meet the following requirements to establish that construction of a solar facility has begun for purposes of claiming the ITC:
Starting physical work of a significant nature (Physical Work Test), or
Meeting the so-called Five Percent Safe Harbor test (i.e., paying or incurring five percent or more of the total cost of the facility in the year that construction begins).
20% in additional credits are also available: This refers to the American-made equipment and labor costs.
And amazingly for Nonprofits…
Nonprofits & Direct Pay
Any organization that has tax-exempt status qualifies for ITC Direct Pay.
This is the direct cash payment of 30% of the project cost paid directly rather than as a tax credit.
It means nonprofits for the first time can realize the full economic benefits of solar.
So are you interested in taking advantage of government help to pay for cheaper, cleaner, better energy?
HERE’S PROJECT MANAGER GINO RICHTER TO EXPLAIN THE 4 SIMPLE STEPS IN JUST ONE MINUTE:
Chat to us about your better energy project in the bottom right of the page, or leave us a quick note in the contact form below and we’ll get back to you within 24 hours.