Commercial Solar Panels Taxes and Rebates

Sample Commercial Solar Project Transaction – Please note that we focus on Commercial Solar Panel Systems from 75,000 watts (75kW) and up. We also provide pre-construction development for solar farm projects. Our unique blend of experience helps maximize commercial solar incentives. Please contact us for more details

# Let’s take a $5 Million ($USD) Commercial Solar Project designed to eliminate as much daytime power requirement as installation space allows
# $5 million solar energy facility placed into service in 2011
# Initially the 30% cash grant amount will be $1.5 million
# The depreciable basis would be $4.25 million, which is $5 million-[50% * $1.5 million], or 85% of $5 million
# The 100% bonus depreciation in 2011 would be $4.25 million
# The taxpayer may use these tax benefits or, for larger solar farm projects, monetize both of them through a tax equity investor
# For a corporate taxpayer with a 35% federal tax rate, assuming income to offset, the federal tax savings in 2011 from the bonus depreciation would be approximately $1.5 million
# Of the $5 million that needs to be financed, about $3.2 million or 64% is recoverable in 2011
# California does not allow a taxpayer to claim bonus depreciation for state tax purposes. See your tax advisor for other state rules
# Property Tax exempt increases property value without taxation and is a standout in commercial real estate market with a 30 year hedge against energy inflation
# Real time monitoring with flat screen in lobby for client interaction and system monitoring
# WREGIS compliant

Bonus Depreciation for 2011

# The 2010 Tax Act allows 100% bonus depreciation for new qualified property acquired and placed in service after September 8, 2010 and prior to January 1, 2012
# A corporation or taxpayer that places a solar farm or commercial solar system in service between September 8, 2010 and January 1, 2012can claim an immediate deduction against income of 85% of the cost of the property
# The entire capitalized cost of a solar generation facility or commercial solar panels in 2011 may be written off in one year instead of over a 5-year period (must be new equipment)
# The law also provides for a 50% bonus depreciation in 2012
# Bonus depreciation can create a NOL (net operating loss), which may be carried back to the two prior tax years and provide an immediate tax refund or carried forward for twenty years
# Both the 30% cash grant and bonus depreciation are available in 2011 although the cash grant is limited to energy generation projects

Extension of Section 1603 Cash Grant in Lieu of Investment Tax Credit Program

# Section 1603 program was established (American Recovery and Reinvestment Tax Act of 2009) to cover a 30% cash incentive for the implementation of renewable energy projects
# The 2010 Tax Act created a one year extension for the cash grant
# The renewable energy project must go into service by the end of 2011
# Over $5.8 billion in payments have been made so far under the program !!
# Now is your time to act before the cash grant option expires

Although the information in this proposal is intended to be current as of April 2011, Commercial Solar Design makes no warranty or guarantee of any kind that it is correct, complete or wholly-up-to-date. Please note that this document is intended to provide only general guidance. You should not rely upon or construe the information herein without first seeking the counsel from a financial specialist. You are strongly urged to obtain specific advice from a tax specialist, as the U.S. tax code is complex. Interpretations of tax law are frequently established based on the merits of individual cases that come before the IRS, as opposed to preconceived rules.

About Sy Richardson

Sy Richardson brings years of high level client interaction. He is an expert in strategic thinking, problem solving, negotiation and logistics. His first solar company was started in the 80s in Miami Fl where his company installed over 3,000 residential solar systems. In 2008 Mr. Richardson refocused on utility scale solar projects and has many connections in the industry. He founded Commercial Solar Design, a company focused solely on solar farm development projects. Sy is involved in all stages of the solar farm project life. Sy is currently the Executive VP of EternaTile, Inc. EternaTile has completed 6 years of R&D and is now the best performing roofing system on the market. The EternaTile fully integrated BIPV Roofing System will follow later in 2016. The patented EternaTile Roofing System takes rooftop performance and integrates solar PV to the next level by encapsulating solar cells in the roofing tiles. The integrated solar delivers a beautiful rooftop solar solution as compared to mounted solar panels. Contact Sy or visit for more info. He loves working with the Maine Island Trail Association, and other earth friendly organizations. He has a wealth of information regarding solar and industrial technical issues. Specialties: Utility Scale Solar Farm Projects Distributed Utility Pre-Construction Development CAISO Interconnection Application Review
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