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!
- 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.