Normally, the depreciable life of solar panels is 85% of the full solar system cost which may be depreciated roughly as follows: Year 1 – 20%, Year 2 – 32%, Year 3 – 19.2%, Year 4 – 11.5%, Year 5 – 11.5%, and Year 6 – 5.8%. Are you interested in a free solar consultation to show you what the numbers could look like?
For those new to business ownership:
As a large purchase that will be used overtime, a solar system’s cost is deducted from taxable income via a so-called 5 year ‘depreciation’ (rather than 100% immediately as a direct ‘expense’). While 26% of the cost is recovered directly as a credit against tax liability for the year of installation (see above), the law nonetheless allows 85% of the full system cost (rather than 70%) to be deducted from taxable income over time via ‘depreciation. Depending on the tax bracket, roughly 12-25% of original system price may be recouped this way.
For more information on the federal MACRS & Bonus, see IRS Publication 946, and IRS Form 4562. IRS Brief Overview of Depreciation
Always contact a trusted tax professional to verify eligibility in business’s specific case.
https://youtu.be/G3BkqE_oJeM Cameron McCurdy, owner of ProTek Communications, explains why he chose StraightUp Solar to install a solar energy system at multiple business locations. When it
WEBINAR Accelerating the Clean Energy Transition How New Incentives Make Solar More Affordable and Accessible in Our Community Wed, Nov 1, 2023 12:00 PM There’s so