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the what’s & how’s of solar incentives

National Incentives:

Solar Investment Tax Credit (ITC)
If you’re a homeowner who buys a solar panel system, you’re entitled to towards the total cost of that system. You can wipe out your entire tax bill if your credit is high enough, and you can take the credit over multiple years if you don’t owe that much in year 1.The federal tax credit covers 30% of your solar system’s cost and is available through the end of 2019.

MACRS Depreciation
The Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified life by annual deductions for depreciation. Under the new tax code, solar projects qualify for 100% depreciation in the first year, in addition to the ITC and any local incentives.

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