Remember the economic stimulus of late 2008? A little known tidbit is it entailed a rapid depreciation bonus for solar energy installations completed by the end of 2009. That deadline is approaching pretty fast. What does that mean for you if you’re considering solar?
Well, not a whole lot of beans if you’re a homeowner. The 60% bonus depreciation schedule is only good for businesses. Now, if you run a home based business, that’s an entirely different story as you can depreciate that equipment since it feeds electricity into your office.
If you are a businessowner with some tax liability, you better get moving and install a system by the end of this year to take advantage of this huge benefit.
Here’s how it works: Solar energy is on a 5 year rapid depreciation schedule. This means you, the owner of the business, can write off the entire cost of the system as a loss on your taxes over these five years.
If that wasn’t awesome enough, bonus stimulus government cheese depreciation for first year is 60%. So, your business is forecasting some 2009 tax liability and you go solar, you will potentially be able to eliminate 60% of the system cost from your taxable basis (then 10% per year over the next 4 years).
This could potentially save you from paying multiple thousands of dollars in taxes. We are no tax advisors at SPR, but it is imperative you get on the horn with your local tax professional to figure your potential savings. Hop to and get solar quotes for your business here.