Going Solar for Businesses: Understanding Accelerated Depreciation and Federal Tax Credit

As a business owner, you always look for ways to reduce costs and increase your bottom line. One way to achieve these goals is by going solar. Not only can solar energy save your business money on energy bills, but it can also provide significant tax benefits through accelerated depreciation and federal tax credits.

Accelerated Depreciation:

Accelerated depreciation is a tax benefit that allows businesses to recover the cost of their solar investment more quickly. Instead of the typical 39-year depreciation period, solar energy systems can be depreciated over a 5-year period. This means businesses can deduct a significant portion of their solar investment from their taxes each year, reducing their tax liability and increasing their cash flow.

Federal Tax Credits:

In addition to accelerated depreciation, businesses can use federal tax credits to install solar energy systems. The Investment Tax Credit (ITC) allows businesses to deduct 30% of the cost of their solar system from their federal taxes.

Other Benefits:

Aside from tax benefits, going solar can also help businesses reduce their carbon footprint and promote a positive image for their brand. Consumers are increasingly looking for companies that prioritize sustainability and environmentally-friendly practices, and going solar is a great way to demonstrate your commitment to these values.

Conclusion:

Overall, going solar is a smart choice for businesses looking to reduce costs, increase cash flow, and promote sustainability. With accelerated depreciation and federal tax credits available, now is the perfect time to switch to solar energy. At Terra Nova Solar, we are dedicated to helping businesses achieve their solar energy goals. Contact us today to learn more about how we can help you make the switch to solar.