incentives

1. The U.S. Investment Tax Credit (ITC) is a solar incentive that provides a 26% federal tax credit for
   eligible costs of going solar. 
   • In December 2020, Congress passed an extension of the ITC, which provides a 26% for systems commencing construction in 2020-2022
   • 22% for systems commencing construction in 2023
   • 10% for systems commencing construction in 2024 or thereafter. 
   • Any PV system placed in service after 2025, regardless of when it commenced construction, can receive a maximum tax credit of 10%.

1. Typically, a solar PV system that is eligible for the ITC can also use an accelerated depreciation corporate deduction
2. Bonus Depreciation: Solar systems qualify for 100% bonus depreciation in year one. 

           The Modified Accelerated Cost Recovery System (MACRS), is a method of depreciation in which a business’ invest aments in certain tangible property are recovered, for tax purposes, 

over a specified time period through annual deductions.