Tax credits, incentives, and grants for commercial projects

GUIDING YOU THROUGH THE PROCESS

Helping your business go solar

There are several federal and local programs help businesses, rental properties, and other commercial organizations purchase and install solar energy systems including: low-interest loans, accelerated depreciation frameworks, grants for non-profits and small businesses, and special incentives to encourage companies to go solar.

National programs

FEDERAL INCOME TAX CREDIT

The Federal Income Tax Credit is valued at 30 percent of your total solar system cost. A tax credit is a dollar-for-dollar reduction of the income tax you owe. If you can’t use the full value in one year, you can roll over the remainder to next year.

You should check with a tax adviser to make sure you can claim the entire value. This incentive reduces from 30% to 26% in 2020 and 22% in 2021.

MODIFIED ACCELERATED COST RECOVERY SYSTEM (MACRS)

MACRS is an accelerated tax depreciation schedule in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified life by annual deductions for depreciation.

Qualifying solar energy equipment is eligible for a cost recovery period of five years. This incentive is typically only available for businesses and rental properties.

Local programs: Tax credits, rebates and incentives

 

In addition to the federal income tax credit, many states have solar incentive programs. Click below to learn more about your state’s programs or call us at (206) 707-9937 or (503) 420-8680 and we’ll be happy to explain them to you over the phone.

Grants for small businesses and nonprofit organizations

Government and foundation grants may be available to help your organization pay for up to 100 percent of the cost of a new solar energy system. A&R Solar has installed systems for nonprofits, local schools, colleges, and public buildings in Washington and Oregon. Many of these organizations have used grant dollars to help pay for their system, and they are now receiving the benefits of a reduced energy bill.

Our solar team stays up to date with local and federal grant programs that provide solar for community organizations like schools, churches, libraries, and some small businesses. We can help:

Locate grants that will help pay for the cost of going solar

Assist with grant writing and technical information for applications

Track grant application process and an updated timeline to installation

Contact us to see if your organization is eligible for a grant to go solar, or nominate one of your favorite nonprofits. You can also email this information by emailing grants@a-rsolar.com.

“I worked with A&R Solar on a project for the King County Housing Authority at Greenbridge. Solar was not part of the initial contract… A&R was vital in helping the team understand what needed to happen for these buildings to receive solar, and made the transition very seamless through the planning phase. [The installation] was carried out by thoughtful, user friendly installers that provided a high level of quality. The quality is proven by the fact that this system has been reeling in solar credits for the owner for 5 years now without any issues!”

JOE GRIM, SUPERINTENDENT, WALSH CONSTRUCTION Co.