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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: sylvester80 who wrote (190836)	7/3/2006 10:47:13 PM
From: Wharf Rat	Respond to of 281500

Only took about 14 months from when I started on it. Grrr. A re-submission of the rebate paperwork, panel shortages, waiting for the fed tax credit to kick in, and a very wet spring. The tax picture... Federal Tax Credits and Accelerated Depreciation -------------------------------------------------------------------------------- Residential Solar Systems: Federal Income Tax Credit - 30% of the Total System Cost less State Incentives. ($2000.00 cap) California Energy Rebate is currently $2.60 per watt. Jan 1, 2007 the Ca Solar Initiative takes affect, giving the PUC control over all rebates with a starting rate of $2.50 per watt. This will be funded by all utility users and will be reduced by 10% each year until 2017. (1) Newly constructed active solar systems are exempt from California Property Taxes. Solar water heating, except for pools and spas, is eligible for a separate 30% Federal Tax Credit. For example a 2500 watt solar electric system that has a total installed cost of $21,587.00 would have a $6500.00 CEC rebate and a $2000.00 tax credit making the net cost $13,087.00. Federal taxes on the rebate will still be owed, but congress is considering a $2000.00 per kilowatt credit instead of the flat $2000.00 credit limit for residential systems. This would benefit large systems now losing the federal tax credit to the taxes on their state rebates. Download the Seia Tax Manual for more information. It seems that the federal credit applies to off-grid systems as well as grid tie systems. The credit will reduce to 10% Jan 1, 2008 so you must complete your system before then to receive 30%. We strongly suggest you contact a tax professional in any case. -------------------------------------------------------------------------------- Commercial Photovoltaic Systems: Federal Investment Tax Credit - 30% of Total System Cost. (State Incentives are taxable income for Federal but not for California) California Energy Commission Rebate is currently $2.60 per rated watt for systems up to 30kW. For larger systems the PUC rebate is now $2.50 per watt. Accelerated 5 year Depreciation on the Cost of the System less 1/2 of the Tax Credits.(2) Newly constructed active solar systems are exempt from California Property Tax. For example a 150 kW System with a total installed cost of $1,027,500.00 would get a $247,500.00 PUC rebate after taxes, a Federal Investment Credit of $308,250.00 and a 5 year accelerated depreciation savings of $296,948.00. With state depreciation savings deducted the net cost after 5 years would be $108,014.00. The savings in utility bills @ $.16 per kW would be $219,416.00, so the system has paid for itself in 5 years. (1) California Rebate requires a grid tie system. (2) See your qualified tax professional for advice on your individual situation. The basis for the tax credit is the total system cost and the basis for depreciation is 85% of the total system cost. Businesses have two years to take the tax credit. Download the Seia Tax Manual for more information. We strongly suggest you contact a tax professional to minimize your net system costs. zapsucker.com