Federal, State, and Local government incentives for property owners and investors that purchase and install Solar Energy Systems.
Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation
SolarWindSolutions
Alternative Energy Solutions For Home, Business and Off-Grid Needs
Investment in solar energy system equipment and installation may be eligible for federal income tax deductions through the Modified Accelerated Cost-Recovery System (MACRS). The IRS allows commercial solar PV system owners to deduct up to 85 percent of their tax basis. This form of depreciation can be claimed over a five-year period.
MACRS Depreciation For equipment that has been discounted by the Investment Tax Credit (ITC) the owner must reduce the project’s appreciable basis by one-half the value of the 30% ITC. This means the owner is able to deduct 85 percent of his or her tax basis.
The Bonus Depreciation
This additional incentive allowed businesses to deduct their capital expenses by 50% BONUS depreciation in the first year after installation in addition to the standard first-year depreciation, And equipment placed in service during 2019 can qualify for 30% bonus depreciation.