Tax Considerations
The Emergency Economic Stabilization Act of 2008 included a significant improvement in tax incentives for the utilization of solar energy. The new regulations maintain the 30% tax credit for almost all solar applications, and it also removed any dollar limits to the tax credits. These credits can be utilized to reduce any Alternative Minimum Tax due and can be carried forward to future tax years. There are additional credits available for energy efficient appliances as well as both heating and cooling equipment.
The state of South Carolina allows a tax credit of 25% of eligible cost to a maximum of $2,000 or 50% of the taxpayer’s liability whichever is less. The credit can be carried forward up to 10 years.
By using several computer programs designed for the renewable energy industry, we can prepare detailed data on all available tax incentives, depreciation, and would include ROI and cash flow profiles.
Database of State Incentive for Renewables & Efficiency (DSIRE)