Tax Incentives

Unlock the Power of Solar Tax Incentives

Investing in solar energy not only benefits the environment but also provides significant financial advantages for investors. Through a combination of federal tax incentives and depreciation deductions, solar energy projects offer compelling opportunities to maximize returns while contributing to a sustainable future.

Investment Tax Credit (ITC)

One of the most attractive benefits for solar investors is the Investment Tax Credit (ITC). Established under the Energy Policy Act of 2005, the ITC allows investors to claim a tax credit of up to 30% of the total project cost. The 2022 Inflation Reduction Act (IRA) further enhances these benefits by providing an additional 10% bonus for projects that meet specific criteria, such as using domestically produced equipment. In some cases, this brings the total tax credit to as much as 50%.

With the ITC, investors can also:
• Carry tax credits back for up to three years.
• Carry credits forward for up to twenty-two years.
• Transfer tax credits to other entities if they cannot be fully utilized by the project owner.

Accelerated Depreciation with MACRS

Solar energy investors also benefit from the Modified Accelerated Cost Recovery System (MACRS). This system allows investors to recover their solar project costs through accelerated depreciation, offering substantial tax deductions over a five-year period. In addition, investors can take advantage of bonus depreciation, which allows them to claim a large portion of their return in the first year of operation.

• Projects placed in service in 2024 can claim 60% bonus depreciation.
• Projects placed in service in 2025 can claim 40%.

Maximize Your Solar Investment

By leveraging both the ITC and MACRS, investors can significantly reduce their tax liabilities and accelerate their return on investment. At GeoFire Solar, we help clients navigate these incentives to optimize their solar projects and meet their financial goals.

Get in touch with us today to learn more about how solar tax incentives can benefit your investments.

Free Consultation

Ready to explore how solar energy can benefit your investment portfolio? Schedule a free consultation with our team of experts. We’ll guide you through tax incentives, financial structuring, and market opportunities to help you make informed decisions about your solar investments.

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