Tax Advantages with Solar Energy for Landlords

Property owners can see significant savings by using solar energy systems in their residential and commercial properties. The energy savings is real, and, thanks for tax incentives, credits and rebates, the systems are now extremely affordable. In fact, many building owners can recoup their entire investment in just 3-5 years!

Federal Tax Credit: 30% with No Cap

Unlike tax credits available to homeowners, who do have a cap on their tax credits, there is no such cap on commercial and multi-tenant buildings. With 30% of the cost of the system recouped in the form of tax credits (full credits, not merely deductions), your starting cost is slashed significantly.

State Tax Credits

Depending upon your state, tax credits may also be available at the state level. Data is available to help you assess the amount of state credits you will receive by installing a solar energy system in a commercial environment. Programs change quickly; please consult with our experts for current programs in your area.

Utility Credits

Many utility companies also offer incentives to building owners to install green energy, which lessens the load on the power grid. It often costs less for them to incentivize you to add your own energy source than it would cost them to augment the existing grid for additional power demands. The credit available will vary, and are not available in all areas. Here too, programs change quickly, so call and speak with one of our experts for current programs for your area.

Accelerated Depreciation

Unlike individual home owners, commercial landlords and multi-dwelling units can depreciate the cost of their system over a period of just five years. With an annual deduction of 20% of the cost of the system per year, for five years, you will see even greater benefits by installing clean technology solutions.

Recoup Cycle: 2 to 3 Years

With all available tax credits, deductions and depreciation applied, the typical property owner will recoup their investment on solar heating tubes in just 2-3 years. Solar electric systems, which may be used in conjunction with solar heating tubes, can recoup their investment in 5-8 years.

Changing Climate in Washington

The current economic packages and stimulus plans direct tremendous benefits into green energy. In the future, we may see Washington curtail tax advantages and make fewer dollars available for these programs. Inquire today to ensure you take full advantage of all programs currently available.