Solar Rebates and Incentives
The government’s commitment to create a low carbon community has created a variety of incentive programs to entice utility customers to generate their own solar energy.
- Federal Investment Tax Credit/Grant (ITC) – The federal government is offering a 30% investment tax credit or 30% grant from the United States Treasury Department on solar property: a) placed into service in 2009 or 2010; or b) placed into service between 2010 and January 1, 2017 as long as the construction began in 2009 or 2010.
- Bonus Depreciation Tax Benefit – The American Recovery and Reinvestment Act of 2009 (Stimulus Act) extends availability of the 50% bonus depreciation provision for capital expenditures incurred for solar property placed in service during 2009.
- 6 Year Accelerated Depreciation Tax Benefits – The Modified Accelerated Cost Recovery System (MACRS) property class for solar property is 5 years. See IRS Publication 946, IRS Form 4562: Depreciation and Amortization, and Instruction for Form 4562.
- Solar Renewable Energy Certificate (SREC) Earnings – SRECs are tradable environmental commodities which are generated for each 1,000 kW hrs of solar production.
- State and Utility Tax Incentives – Additional state and utility tax incentives may be available to some consumers. Entech will help establish what money your business may be eligible for.
- Electrical Energy Savings – From the first day your solar energy electric generating facility is active, you’ll be saving a large portion of money every year on your electricity bills.
The information and content provided within this document is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a recommendation, or legal, tax or investment advice, or a legal opinion. You should contact your tax advisor, lawyer and Certified Public Accountant to help answer questions about your individual or business specific situation or needs prior to taking any action based upon this information.
IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S. Federal tax advice contained herein is not intended or written to be used, and cannot be used by you or any other person, (i.) for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code, or (ii.) in promoting, marketing or recommending any Federal tax transaction(s) or matter(s) addressed herein.
Entech is committed to providing renewable solar energy sources for residents and business in New Jersey and surrounding areas. Please contact Entech, your NJ solar energy experts today at 800.571.8661 or fill out our solar energy quote form and one of our solar energy professionals will contact you shortly.