- Melissa Deaver
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