Financial incentives are an important part of making solar energy competetive. We understand that these incentives can be hard to understand. Though we recommend consulting a certified tax professional, our staff would be happy to help you answer some questions.
- Energy Investment Tax Credit (Federal)
Solar energy expenditures used to generate electricity are eliglbe for 30% federal tax credit. The tax credit has no maximum cap. Systems must be placed in service on or before December 31, 2016. As part of the American Recovery and Reinvestment Act of 2009, institutions eligible for this tax credit may instead receive a grant from the US Treasury.
- Renewable Energy Tax Credit (North Carolina)
Solar Electric, PV, systems constructed, installed, or leased are eligible for a 35% tax credit from NC. Commercial facilities can claim up to $2.5 million per installation. The credit shall be taken in 5 equal installments beginning in the year of system activation.
- MACRS Accelerated Depreciation (Plus Bonus)
Both Federal and NC depreciation will follow MACRS 5-year accelerated deprecation. For installations in 2012, the federal will also include a bonus 50% in the first year of activation.
- North Carolina REPS
North Carolina's Renewable Energy and Energy Efficiency Portfolio Standard was enacted by Senate Bill 3 in August 2007. This legislation mandates that utilties generate 0.2% of all produced electricity from solar, meaning your electricity is worth a premium.
- Property Tax Abatement for Solar Electric Systems
Solar electric systems placed in service on or after July 1, 2008 in North Carolina are exempt from property tax for 80% of the appraised system value. This is state-wide legislation that is enforced on all local governments in North Carolina.
Steps to Receiving Government Incentives:
- Request a quote from GreenTech
- Consult a Tax Professional to determine eligibility
- Install a PV solar array before the end of the year
- File relevant tax papers with next year's taxes