Tax Benefits for Solar

Generous federal tax incentives can combine to make solar a high performance investment.

Here is a comparison between tax benefits available to homeowners vs. those available to business and commercial owners.

Please remember–tax benefits are only part of the incentives available to you!

For Homeowners:

  • 30% Federal Tax Credit
  • Tax deduction of interest and loan expenses (when the loan is secured by a mortgage on the underlying property)

For Businesses, an excellent tax equity direct investment:

  • 30% Federal Investment Tax Credit
  • 100% first year depreciation (basis for depreciation is 85% of the installed cost of the system).   New for 2018!
  • Tax deduction of interest and loan expenses (for both mortgage secured and UCC (defined by Uniform Commercial Code) equipment lien security)
  • Reduction in self employment of FICA tax for certain sole proprietorships or LLC’s.Read more about FICA Savings.
  • Up to 60% of the solar cost can be returned to you in the first year from tax benefits.