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.
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The Flag and Banner:
[00:51:40] JF: We don’t have any problem with that. We consume so much energy at Community Baker that our solar panels – We have 102 solar panels on our –
[00:51:48] KM: Where are they? Are they on the roof?
[00:51:50] JF: They’re on the roof of that main building that people come in and sit down and have their coffee. You can barely see the edge of them and actually that’s by design partly because we buy, installing them on a historic building and you’ll be interested in this, because you have an historic building, but more historic than ours. In fact, but in any event, we were able to claim a historic rehab credit for the cost of that solar installation, and that was another reason that made it very attractive to do it and persuaded me to say, “Let’s just get this done and I don’t have time to spend a lot of energy on trying to look at other alternatives.” I trusted the people Seal Solar are the ones who did –
[00:52:41] KM: Seal Solar.
[00:52:42] JF: Seal Solar. They did our project. They did a very nice job. They’re good people to work with.