Federal Tax Credit
As of October 3, 2008 the Federal Solar Energy Investment Tax Credit (ITC) for homeowners and businesses has been extended through the end of 2016 via provisions in H.R.1424 to the Emergency Economic Stabilization Act of 2008. To view H.R. Bill 1424
Residential
Solar Electric (PV)
Residential systems installed after January 1, 2009 can take advantage of a full 30% tax credit of the system cost. The tax credit can be used to deduct any money owed to the IRS for two years after the system is installed. For more information about how to take advantage of the full 30% Federal Income Tax Credit see your accountant or tax specialist.
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REE SHERMAN
Dallas - Ft Worth Sherman
Commercial
Federal Business Tax Credit of 30%
A federal business tax credit of 30% of the net system cost is available for solar electric (PV) systems, wind energy systems with wind turbines less than 100 kW and solar water heating systems.
Treasury Energy Grant
Commercial projects may decide to apply for a Treasury Energy Grant in lieu of the investment tax credit (ITC). The grant is paid out by the Treasury department within 60 days of the project completion.
Federal 5 Year Accelerated Depreciation Schedule
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover the cost of a solar electric PV, wind turbine and solar hot water heating systems on an accelerated 5-year schedule.
The owner is entitled to deduct 50% of the adjusted basis of the property in the first year of operation. The remaining 50% of the adjusted basis of the property is depreciated over the ordinary depreciation schedule.
