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 2024 will receive 60% 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 – 40% in 2025, 20% in 2026, and anything installed in 2027+ gets the original MACRS Tax Act recovery model. Even with these 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 on the FOE Business Webpage.
