Federal, State and local incentives and rebates vary widely depending on the size of your business operations, the overall energy efficiency of your facility, and system performance. One Sun sales and business specialists will work with you to define the options that will maximize your savings and they will guide you through the incentives process. We recommend that you seek the advice of your tax professional in order to see how the new tax provisions may specifically apply to your business or facility.

Renewable Energy Grants (Including provisions of the American Recovery and Reinvestment Act)What’s good for the environment is also good for your business. The Department of the Treasury provides grants of up to 30% of the total cost of solar property placed in service during 2009 and 2010. If the property is not placed in service prior to December 30, 2010, the project will still qualify for the grant if construction begins prior to December 31, 2010 and is placed in service by January 1, 2012. Applications must be filed by October 1, 2011. Businesses will qualify for the full amount of the grant even if the projects receive subsidized energy financing.www.eere.gov/solar/, www.recovery.gov

Bonus Depreciation Solar projects qualify for the 5-year accelerated depreciation (MACRS). In conjunction with this depreciation schedule, the federal government extended through 2009 the 2008 temporary increases of the amount (50% of the cost of capital investment) that small businesses can write off for capital expenditures of up to $250,000. and increased the phase-out threshold to $800,000. The depreciation is calculated by deducting 1/2 of the grant amount, so the basis is 85% of the installed system cost. The resulting depreciation schedule is: Year 1 – 60%; Year 2 – 16%; Year 3 – 9.6%; Year 4 – 5.76%, Year 5 – 5.76%; Year 6 – 2.88%.

ARRA Repeals the Penalty for Subsidized Renewable Energy Financing Businesses now qualify for the full amount of the renewable energy grant regardless of any other subsidized energy financing.

California Solar Initiative Financial incentives, in the form of rebates are offered for solar installations based on the system’s actual performance over the first five years. The system performance is measured by State approved monitoring systems installed during initial installation.www.gosolarcalifornia.ca.gov, www.dsireusa.org

We will also advise you about other city and county incentives that may apply to your project.