$500 dollar rebate from Focus on Energy for residential solar projects in qualifying utility territories.
The Federal Residential Renewable Energy Tax Credit allows taxpayers to claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.
In Wisconsin, any value added by a synthetic gas energy system, solar-energy system, or a wind-energy system is exempt from general property taxes. The property tax exemption applies regardless of whether the equipment is deemed real property or personal property.
A solar-energy system is defined as “equipment which directly converts and then transfers or stores solar energy into usable forms of thermal or electrical energy, but does not include equipment or components that would be present as part of a conventional energy system or a system that operates without mechanical means.” Passive solar design elements do not qualify under these rules.
Businesses that install solar photovoltaic (PV) systems are eligible to receive an (ITC) investment tax credit, which can be used to directly offset federal tax liability on a dollar-for-dollar basis. If the tax credit exceeds your tax liability you can roll the credit into future tax periods for 20 years. Commercial projects that commence construction through the end of 2033 are eligible to receive a 30% tax credit of the total PV system cost.
Non-taxable entities now have an option for Direct Pay of their ITC. Visit our C&I homepage for more information as the rollout of this new option evolves.
Systems installed in 2023 will receive 80% bonus depreciation for property placed in service. The remaining 20% is taken under the standard MACRS (Modified Accelerated Cost Recovery System) over the following 5 years.
This will change by 20% each year following – 60% in 2024, 40% in 2025, 20% in 2026, and anything installed in 2027+ gets the original MACRS Tax Act recovery model. Even with the se percentage changes, you should receive a comparable incentive after 5 years of operating your system.
Focus On Energy Business Customer PV Incentive supports up to $50,000 for commercial properties and up to $60,000 for agricultural producers. It is available to commercial properties (e.g. any property outside of a 1-3 unit home), and also applies to municipalities, non-profits, and/or any entity on a commercial utility rate structure. This incentive is prescriptive based on size; more specific details can be found at the FOE Business Webpage.