Tax Credits

Federal & State Financial Incentives

The California Solar Incentive rebates as well as federal and state tax incentives cut the cost of your Solar PV System substantially. But rebates will go down the longer you wait, so it pays to install solar now for your business.

FEDERAL TAX CREDITS

Federal Investment Tax Credit

  • Residential: 30%, uncapped energy tax credit, IRS Form 3468
  • Home-Based Business: At least 20% business use to be eligible for 30% tax credit on business portion, including depreciation
  • Commercial: 30% Business Energy Credit, IRS Form 3468

Federal, Pre-1936 Buildings

  • 10% Investment Credit, IRS 3468

Federal, Certified Historic Structures

  • 20% Investment Credit, IRS 3468

Federal, Agricultural Credits

  • 10% Investment Credit, IRS 3468

Federal, Depreciation

  • Business: Section 179 Deduction (up to $112,000 for 2007) and/or 5-Year Accelerated Depreciation

STATE TAX REBATES

State, Depreciation

  • Business: 5-Year depreciation method for non-corporate

12-Year Class Life/Recovery period for Corporate Business Taxpayers
State, Property Tax Exempt

  • Solar installations are exempt from property tax

(California Revenue and Taxation Code Section 6353.5)

PROPERTY VALUE

Estimated increase in property value: $20 for every $1 saved

RETURN ON EQUITY

3 to 8 year return on investment, 25 year positive, after-tax cash flow