2013 Solar Tax Credits, Grants and Other Incentives
Tax incentives can save you anywhere from 30 to 50% of the cost of a Run on Sun® solar power system.
When combined with Solar Rebates, your savings can be as high as 70% of the system cost!
(To learn about Solar Rebates, click here.)
Please note: Run on Sun provides this information as a courtesy to our clients and we believe this information to be accurate as of the January 2013. However, clients should always consult with their own tax advisor regarding the applicability of any tax-related incentives.
2013 Solar Tax Incentives for Residential Clients
In 2008 the Internal Revenue Code was amended to provide a full 30% tax credit for qualified clients. This includes the cost of equipment as well as related labor costs and that credit continues through 2016. The "basis" for calculating the 30% credit is the cost of the solar system minus any rebate provided by the utility.
As with any tax credit, its value to you is dependent on your "tax appetite." Please consult with your tax advisor to determine the value to you of this tax credit.
2013 Solar Tax Incentives for Commercial Clients
Commercial clients are also entitled to the 30% federal tax credit. However, since rebates are generally viewed as taxable income to a commercial client, the basis for the tax credit is the full price of the system.
(The Section 1603 Treasury Grant program has expired and is unavailable to projects installed in 2013.)
Solar power systems are allowed to be depreciated under an accelerated, five-year schedule for federal tax purposes and California state tax depreciation may also be available. Please consult with your tax advisor for how these credits, grants and depreciation schedules may apply to your tax situation. For an illustration of how these tax incentives can improve the ROI for a commercial installation, please click here.
2013 Solar Tax Incentives for Non-Profit Clients
Unfortunately, non-profit organizations such as schools, churches, etc., are not able to qualify for any of these tax incentives. However, Run on Sun’s innovative SunCorp service offering provides a way for non-profit organizations to take advantage of these additional incentives to install a solar power system with no up-front costs while enjoying years of savings. More information about SunCorp is available here.
To learn about Solar Rebates, click here.