COMMERCIAL/INDUSTRIAL TAX INCENTIVES AND CREDITS
(Page last updated February 10, 2010)
 
Disclaimer:  Regardless of what you read here or anywhere else, it is essential that you consult with a knowledgeable CPA who is specifically versed with the applicable tax laws to verify what incentives will apply directly to your project/business.  Creative Solar USA is not responsible for any use or mis-use of the information provided below.  Creative Solar USA, Inc. disclaims all warranties, express or implied, with regard to the following, which is provided for informational purposes only.
 

FEDERAL
 
The tax incentives described below have been renewed through 12/31/16.  While these incentives have gone through various changes in recent years, below describes their current status. 
 
This federal tax incentive is complicated and covers the renewable energy in different ways.  First off with commercial and industrial applications, it is possible to take this incentive in the form of a tax credit or receive it as a grant.  (Click on the appropriate text link to learn more.) 
 
In general, the tax credit for solar electric, solar thermal, and small wind* is 30% of your installation.  
 
With regards to geothermal, the incentive is 10%.  There's no cap for geothermal.  
 
*For IRS purposes, "small wind" is generally defined as 100kW systems or less.
 
Furthermore, there is another tax incentive available to commercial and industrial solar electric, solar thermal, wind and geothermal applications in the form of depreciation (MACRS**).  The MACRS incentive lets entities take the installation costs (after the "adjusted basis") and depreciate them over a 5 year period.  
 
There used to be a "bonus" 50% the first year depreciation involved in this incentive.  However, this expired as of December 31, 2009.  It remains to be seen if this "bonus depreciation" will be renewed for 2010.  If this happens, we'll update our page, right away.
 
Of course, some of these tax credits and incentives have certain caveats and limitations.  Check with your CPA to find out more specific details.
 
**MACRS = Modified Accelerated Cost-Recovery System
 
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We'd like to point out that leasing your system may give you more tax advantages than the aforementioned depreciation incentives.  We have relationships with certain finance companies, some of whom are specifically versed with the renewable energy industry and are better able to structure their programs for you.  Please ask us for details.
 
 
FEDERAL REAP GRANT
 
This grant is from the USDA and is not to be confused with the federal tax grant referenced above.  With the USDA REAP (Renewable Energy for America Program), applicable sectors may received 25% of the project cost through this grant.
 
Furthermore, there's a REAP Loan program which may be utilized in conjunction of the grant.  However, the combination of the loan program with the grant may not exceed more than 75% of the project's cost.
 
Lastly, eligibility varies and is based initially on the project location.  Contact your USDA office to find out if your address qualifies for either the grant and/or the loan program.
 
Applicable sectors include small business, schools, local government, state government, rural electric cooperative, agricultural and public power entities.
 
   
GEORGIA
 
This tax credit became effective July 1, 2008 (HB 670) and runs through 12/31/2012.  The renewable energy credit is 35% of your total installation costs.  The maximum credit for PV and wind is $500,000.  For solar hot water and geothermal, the maximum credit is $100,000.
 
As of April 2009, the state enacted a rebate program for commercial entities who installed qualifying renewable energy systems.  Solar hot water and geothermal pumps have a cap maximum of $100,000.  Solar electric and wind have a cap of $500,000.  An entity may only receive either the tax credit or the rebate; it may not receive both.
 
Keep in mind that there is a limited amount of funds available for these programs, and these programs run on a first-come, first-served basis.  Furthermore, the tax credit "competes" with residential for this incentive.  What is meant by this is all monies for residential or commercial tax incentives come from the same fund.
 
Note: The state tax incentives discussed here apply for the state of Georgia only.  To see what incentives apply for your state, please visit the DSIRE web site and click on your home state to learn more.  [DSIRE = Database of State Incentives for Renewables & Efficiency] 
 
 
UTILITY COMPANY REBATES AND/OR LOAN PROGRAMS

While not all utility companies offer incentives to those who install renewable energy, many do and more companies are changing their policies to expand coverage to this arena.  
 
Scroll to the bottom of this page to see a short list of utility companies, or better yet, call your particular utility company and ask them directly what is available.  You might need to go beyond the customer service representative to a manager to get this information.  Keep asking!  If they don't have a program, ask them to consider instituting one.  You might be surprised what happens.