www.dsireusa.org - Database of State Incentives
Under the new California Solar Initiative, rebates and tax incentives can save your clients up to 60% of their system’s cost. But rebates go down the longer you wait, so it pays to install solar now on their home or business. Here are some of the solar incentives available:
Rebates
Utility rebate programs are available up to 30% of the total cost of the system.
Federal, Investment Tax Credit
Residential – 30% Energy Credit (capped at $2000), IRS Form 3468
Home Based Business – At least 20% Business use to be eligible for 30% tax credit on business portion, including depreciation and up to $2000 on residential portion
Commercial - 30% Business Energy Credit, IRS Form 3468
Federal, Pre-1936 Buildings
10% Investment Credit, IRS Form 3468
Federal, Certified Historic Structures
20% Investment Credit, IRS Form 3468
Federal, Agricultural Credits
10% Investment Credit, IRS Form 3468
Federal, Depreciation
Business - Section 179 Deduction (up to $112,000 for 2007) and/or 5-Year Accelerated Depreciation
State, Depreciation
Business 5-Year depreciation method for non-Corporate
12-Year Class Life/Recovery period for Corporate Business Taxpayers
State, Property Tax Exempt
Solar installations are exempt from property tax.
(California Revenue and Taxation Code Section 6353.5)
Property Value
An increase in property value $20 for every $1 saved
ROI
5 to 8 year return on investment, 25 year positive after tax cash flow.
(It compares to a 15% CD)
