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What incentives are there for commercial solar?

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  • The prevalent incentives for commercial solar endeavors encompass the federal solar investment tax credit (ITC), MACRS investment depreciation, and USDA REAP grants.
  • Federal Solar Investment Tax Credit (ITC): The ITC presents an opportunity to offset up to 30% of a commercial solar acquisition through a federal tax credit. Eligibility mandates a business to possess a tax liability upon filing. Significantly, in August 2022, Congress reinstated the 30% solar tax credit, extending its validity for a decade through 2032.
  • MACRS Investment Depreciation: Applicable to every commercial solar system, MACRS, a depreciation method, facilitates the recovery of business investments for tax purposes over a predetermined period through annual deductions.
  • USDA REAP Grants: Tailored for agricultural producers, USDA REAP grants are accessible in specific rural areas with populations below defined thresholds. These grants cover 50% of solar investments, up to $1,000,000, for qualifying businesses.
  • Local Utility and Municipality Incentive Programs: In addition to federal incentives, select local utilities and municipalities provide their own incentive programs. These can be integrated for additional cost savings. A proficient commercial solar installer possesses the expertise to articulate the diverse incentive options available in your specific geographical area.

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