Election Year Uncertainty:
Protect your tax benefits now.
The Government lashed an additional 10% off the cost of your solar system in 2023, catapulting the total tax incentives to a staggering 77%! However, with the election looming in 2024, these lucrative tax incentives are under threat.
The House is actively seeking to close this beneficial loophole and potentially reduce the Solar Investment Tax Credit even more. This golden window of opportunity to maximize your savings may close this year. Act fast to secure a solar system for your business at a best-ever discount!
Energy Community Bonus Tax Credit
A Limited-Time Offer: For businesses situated in select regions across California and Nevada, an additional 10% Energy Community Bonus Tax Credit is now within reach. But with the political winds shifting, how long will this opportunity last?
SOLAR TAX CREDITS in 2024
+ 30% Solar Investment Tax Credit
+ 10% Energy Community Bonus Tax Credit
+ 10% US-Made Equipment
+ 17% Bonus Depreciation
California:
Sutter County
Ventura County (Oxnard‐Thousand Oaks‐Ventura)
Yuba County
Kern County
Los Angeles County (Los Angeles‐Long Beach‐Anaheim)
Orange County
Solano County
Nevada:
Lincoln County
Lyon County
Mineral County
Nye County
Pershing County
White Pine County
Churchill County
Douglas County
Elko County
Esmeralda County
Eureka County
Humboldt County
Lander County
Don’t wait: Reclaim 77% of your solar system costs and slash your electric bill by up to 80%
The optimal time to transition to cleaner, more affordable energy is now, especially when your business can gain significantly from these tax deductions.
Despite the clear financial benefits and substantial reductions in monthly electricity bills, many businesses overlook the available tax deductions that can cover up to 77% of a clean energy system's installation costs.
With tax season upon us, consider whether it's time to reevaluate your energy strategy.
Could it be time for your business to revisit clean energy? Call us on 323.393.0375 to see how we can help.
Investment Tax Credit (ITC)
in a nutshell
Restored and Extended: The Inflation Reduction Act, signed into law in August 2022, restored the Solar Investment Tax Credit to 30% and extended the timeline for another 10 years until 2032.
And extended again!: The new 10% Energy Community Bonus Tax Credit brings the total value of the ITC alone to 40%.
The solar+storage equipment expenses included in the ITC have expanded: Now, energy storage devices that have a capacity rating of 3 kilowatt hours or greater are included. This includes stand-alone storage.
Apply to the past, present, or future: It can be used to pay for the previous year’s tax bill, your current tax bill, or any tax bill for the next 20 years!
The ITC accounts for approximately half of the tax deductions for solar projects: The total deductions can now add up to 77%, so you can pay approximately 23% of the cost of a revenue generating solar project.
Eligibility for the ITC is based on a “commence construction” standard. Taxpayers must meet the following requirements to establish that construction of a solar facility has begun for purposes of claiming the ITC:
Starting physical work of a significant nature (Physical Work Test), or
Meeting the so-called Five Percent Safe Harbor test (i.e., paying or incurring five percent or more of the total cost of the facility in the year that construction begins).
20% in additional credits are also available: This refers to the American-made equipment and labor costs.
And amazingly for Nonprofits…
Nonprofits & Direct Pay
Any organization that has tax-exempt status qualifies for ITC Direct Pay.
This is the direct cash payment of 30% of the project cost paid directly rather than as a tax credit.
It means nonprofits for the first time can realize the full economic benefits of solar.
Nonprofits, houses of worship, and faith-based organizations can find out more about how the Direct or Elective Pay process works by visiting the Treasury website here.
So are you interested in taking advantage of government help to pay for cheaper, cleaner, better energy?
HERE’S PROJECT MANAGER GINO RICHTER TO EXPLAIN THE 4 SIMPLE STEPS IN JUST ONE MINUTE:
Chat to us about your better energy project in the bottom right of the page, or leave us a quick note in the contact form below and we’ll get back to you within 24 hours.