Current Financial Incentives for Commercial Solar Panel Installations
The IRS offers two tax incentives for commercial solar panels Arkansas. First, the 26% Federal Investment Tax Credit (ITC) is available for commercial solar systems under construction by 12/31/2020. To be considered “under construction,” the project can have started physical work or have incurred at least 5 percent of the total cost in the year that construction begins. The 26% tax credit amount is uncapped and equal to 26% of total solar system cost.
Second, Modified Accelerated Cost Recovery System (MACRS) is a method of depreciation in which a business’s investments in solar property can be recovered through tax deductions. MACRS benefits can be taken all in the first year of system operation. Taken together, the federal tax credit and depreciation can reduce commercial solar project costs by about 50% within the first year!
The USDA Rural Energy for America Program (REAP) Grant covers up to 25% of total solar system cost for agricultural producers and rural small businesses. Grant application deadlines are March 31 and October 31 each year. Our grant approval track record is 100%! Learn more here.