Incentives for Businesses to Go Solar
There are several incentives for businesses right now to make the commitment to solar energy. There are two tax credits available in addition to a depreciation deduction.
The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system (usually 30%).
The production tax credit (PTC) is a per kilowatt-hour tax credit for electricity generated by solar for the first 10 years of the system's life. This is adjusted annually for inflation.
Finally, any business installing a solar system from 2018 onward is eligible to claim bonus depreciation. For this year, 2023, the amount has been reduced to 80% and moving forward, that will drop 20% per year. Now is definitely the best time to invest in solar if you are a business, as that deduction will no longer be available in 2027.
For more detailed information on these incentives for your business, visit: https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses