Saturday, December 25, 2010

1 year Extension of TAX INCENTIVES for Solar!

This brightens the outlook for the whole solar industry. Santa's gift to you is PV and Hot Water, he doesn't like wind as much.....

This tax benefit is a simple 30% of the project cost, paid within 60 days of project completion, which in most cases is actually better than waiting for a tax credit. It was renewed for only 1 year, which will probably make next October/November/December another 'boom time' with increased costs.

Although we are not tax advisers, we suggest that business owners seriously talk with their advisers about the possibility of "immediate recovery" of PV expenses. In other words, if you know that you are doing PV, you know that your estimated tax burden will be that much less, and in theory you could pay less on the estimated taxes during the year.

2 catches with that approach--You then must make sure you get the PV into place and operational within your tax year, don't wait until the last minute. The end of the year typically see's huge increase in demand for solar since everyone has procrastinated. These supply/demand imbalances cause pricing to creep up into the year end. Full on product availability may make it impossible to complete the project in the required timeframe.

SUPER BONUS! They also doubled the "Bonus Depreciation" which was 50%, and is now 100%. You get to instantly depreciate money that you never paid in the first place.

Sounds too good to be true? Well let's put it this way, the Government is trying very hard to promote solar, and the incentives make it a no-brainer investment. In most cases we can do a free facility analysis and cost and savings estimate.

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