Investing in renewable energy is one of the smartest financial moves a Bay Area company can make, but knowing exactly where you stand regarding tax eligibility is the first step. At West Coast Solar, we see many owners overlook significant savings simply because they aren’t sure which incentives apply to their specific industry or location. Navigating the world of federal and state tax codes requires a roadmap, and we are here to help you identify the exact resources you need to verify your qualifications!
Consulting the IRS for the Investment Tax Credit
The first place to look is the Internal Revenue Service (IRS) guidelines for the Investment Tax Credit (ITC). Your commercial solar contractor may be able to help you secure some tax credits, but you must verify your liability status. We recommend reviewing IRS Form 3468 to see how this credit offsets your specific tax appetite and if your business’s installation qualifies.
Checking MACRS Eligibility via the Department of Energy
To understand how a solar system for business impacts your annual deductions, you should investigate the Modified Accelerated Cost-Recovery System (MACRS). The U.S. Department of Energy can help you determine how solar assets can be depreciated over a five-year schedule. Checking these schedules allows your accounting team to forecast exactly how much taxable income you can offset in the first few years.
Searching the DSIRE Database for Local Rebates
Beyond federal taxes, there are often localized rebates or performance-based incentives that vary by zip code. We always point our clients toward the Database of State Incentives for Renewables & Efficiency (DSIRE). By entering your location, you can find active utility-specific programsor local grants that apply to industrial solar panels.
Verifying Property Tax Exclusions with the County
One of the best “hidden” discounts in California is the Active Solar Energy System Property Tax Exclusion. You should contact your local County Assessor’s office to confirm that your new system will not trigger a reassessment of your property value. This state-level incentive ensures that while your property becomes more valuable and efficient, your tax bill remains stable.
Explore The Possibilities Of Commercial Solar Panels
At West Coast Solar, we act as a bridge between high-efficiency technology and the financial experts who manage your business. While we provide the technical data and installation excellence, we always encourage you to investigate your eligibility for these lucrative write-offs. Contact us for more information on solar panel installations!
