Federal Solar Hot Water Rebates

There are currently many Federal financial incentives available for commercial solar thermal installations. The American Recovery and Reinvestment Act of 2009 (ARRA) has made some of these incentives even more attractive.

Business Energy Investment Tax Credit (ITC)

The Business Energy Investment Tax Credit (ITC) is now available for eligible commercial solar thermal systems placed in service on or before December 31, 2016.

• The solar ITC credit is equal to 30% of expenditures, including solar design, installation labor, and components.
• Eligible solar energy properties include equipment that uses solar energy to generate electricity or to heat or cool water for use in a structure, or to provide solar process heat.
• At this time, passive solar systems and solar pool-heating systems are not eligible.
• That the Solar Energy Industries Association (SEIA) has published a three-page document that provides answers to frequently asked questions regarding the federal tax credits for solar energy.

Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2009)

Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated.

Currently under the MACRS, solar electric and solar thermal technologies, including solar hot water systems, are classified as having a 5 year life, allowing the recovery to be captured over a 5 year schedule.
 

• Section 179 FAQ’s
• Section 179 Deduction Calculator
• Tax provisions in the Small Business Jobs Act of 2010: summary and practical 

Other Federal Grant Programs

• 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits

1603 Terms and Conditions
1603 Guidance
1603 Sample Application
Create a user name and password, and you will be guided step by step to fill in the application.1603 Terms and Conditions

• U.S. Department of Treasury – Renewable Energy Grants
• Tribal Energy Program Grant
• USDA – Rural Energy for America Program (REAP) Grants

Federal Loan Programs

• U.S. Department of Energy – Loan Guarantee Program
• USDA – Rural Energy for America Program (REAP) Loan Guarantees

 IRS 30% Investment Tax Credit (ITC) Information and Claim Form

• American Recovery and Reinvestment Act of 2009 (ARRA) Guidance
• The Solar Investment Tax Credit Frequently Asked Questions
• 2009 Claim Form 3468 for Federal 30% Solar Thermal Tax Credit

State and Utility Solar Thermal Incentives

• In addition to all of the Federal solar hot water incentives above, you may qualify for state and utility incentives. Check the incentives available by State.
• Free Hot Water also as a convenient estimation tool for both residential and commercial systems. Simply click on your state.

Please consult with your tax advisor prior making decisions on a solar thermal installation for your business. Incentives offered at this time are subject to change pending, federal, state or local law.
For a free evaluation of a Solar Hot Water System for your commercial application or to just check on the current benefits available, please Contact Us.