SOLAR INCENTIVES EXTEND TO BUSINESSES AS WELL AS HOUSEHOLDS
After all, businesses should be leading the charge against climate change. Commercial Solar is useful for saving on operations, reducing your carbon footprint, and maximizing your profit.
WHAT ARE COMMERCIAL SOLAR TAX INCENTIVES?
Similar to solar for households, the government has several tax break incentives for businesses that choose to take this step toward creating a better planet.
30% Federal Tax Credit
25% State Tax Credit (up to $5000)
20% Property Tax Incentive (NYC Only)
Modified Accelerated Cost Recovery System (MARCS)
These incentives each offer a unique benefit and financial upper hand for companies investing in solar.
BREAKING IT DOWN
30% FEDERAL TAX CREDIT
The US federal government’s Federal Investment Tax Credit (ITC) is 30% of the total cost of your solar-powered system. That means you can write off 30% of the purchase and installation cost from your overall taxable income.
MODIFIED ACCELERATED COST-RECOVERY SYSTEM (MARCS)
The MARCS incentive speeds up the depreciation of your solar-powered system and can be claimed over five years. This is specifically for companies that choose to take advantage of the Federal ITC.
STATE TAX CREDIT
In New York State, the NY-Sun Initiative extends throughout the state but varies depending on the office’s region. The tax credit percentage is determined by your region and utility.
20% PROPERTY TAX ABATEMENT (NYC ONLY)
Also the same as the Residential version of this benefit, NYC commercial solar-powered systems (installed between the New Year’s Days of 2014 and 2024) can receive a tax abatement of 5% per year for the length of four years, totaling 20%. Note: Just like the residential version of this incentive, there is a cap at $62,500/year and $250,000 total.
SOUNDS GOOD - WHAT ARE OUR NEXT STEPS?
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