Commercial Solar Tax Credits
The Federal Inflation Reduction Act (IRA) offers significant savings
The Federal Government is now offering a 30% Investment Tax Credit for the installation of a commercial solar system. This is a 15% increase from the previous tax credit of 26% and a significant savings for large, commercial solar projects. The Investment Tax Credit will remain in place through 2032, but now is the best time to act.
Financial Fast Facts
- Nearly 50% reduction of upfront purchase and installation costs with available incentives and grants.
- Receive Return on Investment (ROI) typically within 4 years.
- Potential for millions in additional revenue to reinvest in your operation.
- Impact of solar panels go beyond a single farm, commercial space or operation with significant reduction in carbon footprint.
Complete the form below and download our most recent cost comparison sheet.
Incentives & Programs
Incentive Programs available to you
Federal Solar Tax Credit
The Investment Tax Credit that is part of the Inflation Reduction Act passed in August 2022 allows you to deduct 30% of the cost of your solar energy system.
Federal and State-Level Depreciation
There are depreciation laws at both the state and federal levels that allow businesses to depreciate the value of equipment purchases, which includes solar installation. State-level depreciation tax laws allow for the recovery of the total cost broken up over 6 years, while the Federal-level applies 100% of Federal Depreciation in year 1. Normally, 85% of the full solar system cost may be depreciated over the five-year span.
Annual USDA REAP Grants
The USDA’s Rural Energy for America Program (REAP) Grants provide grants and loans to farmers and businesses for energy efficiency improvements and systems.
By combining federal tax credits, depreciation and USDA grants, you can save nearly half of the initial cost within the first few years. Keep in mind, you will start earning a return on your investment starting the first year and can even start earning a payback typically within 4 years.
FREE COST SAVINGS ANALYSIS!
Contact us for a cost-savings analysis for your farm, commercial or industrial building, water district, or municipality.
