Federal Business Energy Investment Tax Credit
There is a 30% Federal Business Energy Investment Tax Credit for businesses. The 30% credit is extended through 12/31/2019, when it steps down to 26% through 12/31/2020, then to 22% through 12/31/2021 and finally to 10% for ensuing years. Thanks Obama.
Commercial solar energy systems are also eligible for depreciation through the Modified Accelerated Cost Recovery System (MACRS). MACRS depreciation for solar projects is recovered over a 5-year schedule. Eligible solar projects placed in service prior to 1/1/2018 qualify for 50% bonus depreciation. Projects placed in service in 2018 qualify for 40% bonus depreciation and in 2019 qualify for 30%.
North Carolina Solar Rebate – Updated 1/22/2017 – Duke Energy Solar Rebate Program for Commercial and Nonprofits Announced
- Nonresidential customers could receive as much as $50,000 and nonprofit customers could receive up to $75,000
- Nonresidential and nonprofit customers are eligible for a rebate for a system size up to 100kW.
In addition to the tax benefits offered through the ITC and MACRS depreciation, some North Carolina businesses will be eligible for utility rebates starting in January 2018. The recently adopted House Bill 589 establishes a rebate program for North Carolina residents whose electric utility provider, including Duke Energy, serves 150,000 or more customers. The rebate program is limited to 10MW of installed solar capacity annually—2.45MW of which are allotted for commercial and industrial projects. Commercial projects are eligible for rebates on up to 100kW of their solar investments. House Bill 589 sets aside annual limits of 5MW for residential solar projects and 2.5MW for non-profit projects.
Now is a great time to give us a call and talk about the energy goals of your business or nonprofit, call 919-459-4155 or submit a consultation request form below.