NEW TAX BILL OFFERS SURPRISE BENEFITS FOR COMMERCIAL SOLAR INSTALLATIONS.
With the introduction of the new tax bill, Congress increased the bonus depreciation to 100 percent, meaning one can essentially deduct the entire cost of the system in the first year of operation. Either 100 percent of depreciation may be used without the Investment Tax Credit (ITC), or you can depreciate 85% of the total cost and with the 30% tax credit.
Other incentives for qualifying businesses include the REAP program, or Rural Energy for America Program. This incentive program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Eligibility is as follows:
- Businesses must be in an area other than a city or town with a population greater than 50,000 inhabitants and the urbanized area of that city or town. Check eligible business addresses.
- Agricultural producers may be in rural or non-rural areas.
Available funding includes:
- Loan guarantees on loans of up to 75% total eligible project costs
- Grants for up to 25% of total eligible project costs
- Combined grant and loan guarantee funding up to 75% of total eligible project costs
The benefits for choosing solar for your business include:
- Immunity from the rising costs of electricity
- Depreciation can greatly help pay for the cost of the system
- After a payback period ends, your system is making your business money for the life of the system
- Modules, racking, and optimizers (if used) have a 25 year production warranty.
- If you qualify for the REAP grant, you will receive an additional 25% of the cost of the system.
Contact us today for a free estimate on solar for your business!