Business Energy Tax Credits & Solar Energy Grants

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Commercial Solar and Modified Accelerated Cost Recovery System (MACRS) Tax Depreciation
The benefits of combining the U.S. Clean Energy Investment Tax Credit (30%) with accelerated depreciation cannot be overstated.  Since commercial solar can be depreciated at this rate (on a 5-year MACRS schedule), and depending on the cost of your utility-supplied electric, you could see a payback period of under 6 years, with double-digit annual ROI. 
You can download a copy of the most recent IRS Publication 946 by clicking here.  Due to the use of the mid-year or mid-quarter convention (whichever is applicable), depreciation expenses for 5-year property will be reportable in years 1 through 6, beginning in the year the property is placed into service.  Below is the typical 5-year scale for your reference:

Tax Year % to Depreciate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
                       
How Solar Depreciation Works
  • 85% of total solar installation costs are eligible for accelerated depreciation.
  • If you are running a profitable business and can clearly show that the solar power you are generating is for business use then it can have a strong impact on the bottom line.
  • In addition if you have passive income from other investments, the value of this depreciation can be very strong as well. 

Corporate Tax Credits

Federal Loan Programs

Federal Grant Programs 

  • USDA – Rural Energy for America Program (REAP) Grants