One of the major benefits of commercial solar installation is the commercial tax credit also known as the solar investment tax credit (ITC). Here are some highlights about the commercial solar tax credit as it stands right now:
Commercial solar systems that commence construction in 2022 will receive an ITC of 26%.
Commercial solar systems that commence construction in 2023 will receive an ITC of 22%
Commercial solar systems that commence construction in 2024 and beyond will receive an ITC of 10%.
Commercial solar systems that commence construction in 2025 and beyond will receive a maximum ITC of 10%.
In addition to the ITC, business owners can also take advantage of accelerated depreciation and the depreciation bonus to reduce the overall cost of the system.
To claim an ITC, the IRS form 3468 needs to be attached to your tax return. We highly recommend consulting with your CPA regarding the ITC.
Looking for more information on the business tax credit for solar? This guide from the IRS provides everything you need to know about commercial solar installation tax credits.
SOLAR SOURCE® is a Southern California solar contractor that installs custom commercial solar projects. We have been in business since 2008. What sets us apart is our attention to detail, design and quality craftsmanship.
