Federal Incentives
Visit the IRS website for information on federal tax credits.
Investment Tax Credit
- For solar systems installed from January 2006 through December 2008, the federal government offers an Investment Tax Credit (ITC) of 30% of the net system cost for commercial systems.
- For the same time period, residential systems are also eligible for an ITC of 30% of the net system cost, up to a ceiling of $2,000.
- Government and non-profit systems are not eligible for the 30% ITC.
5-Year Accelerated Depreciation Schedule
The federal Internal Revenue Code (IRC) has special depreciation provisions for solar systems. They can be depreciated on a 5-year accelerated schedule, or on the regular depreciation schedule. The depreciable basis is calculated as the system cost minus one-half of any federal tax credit, or 85% of the system cost. These provisions are found in IRC section 179.
Eligibility for the above solar incentives vary from individual to individual. Please consult your tax advisor regarding your system-specific eligibility.
Federal tax credits:
http://www.fsec.ucf.edu/en/media/enews/2005/2005-03_EPAct2005.htm
Highlights of the Energy Policy Act of 2005 for Individuals
U.S. Dept of Energy
Energy Star
Tax Incentives Assistance Project (TIAP)
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