Are You Taking Advantage of the Solar Investment Tax Credit (ITC)?

From reduced utility costs and energy savings, as well as new financing options and federal and state credits that generate tax benefits, solar power can provide a very attractive return-on-investment (ROI).

A critical tax benefit that can help your organization truly embrace solar energy is the Solar Investment Tax Credit (ITC). This federal policy mechanism supports the deployment of solar energy in the United States by offering a 30 percent federal business energy tax credit to commercial businesses that invest in or purchase energy property in the U.S.

According to the Solar Energy Industries Association, here are a couple more quick facts about this tax credit:

  • The 30 percent credit is taken on the net capital investment for a new solar system.
  • The multiple-year extension of the residential and commercial solar ITC has helped annual solar installation grow by over 1,600 percent since the ITC was implemented in 2006 – a compound annual growth rate of 76 percent.
  • The existence of the ITC through 2016 provides market certainty for companies to develop long-term investments that drive competition and technological innovation, which in turn, lowers costs for consumers.

How can your organization truly leverage the ITC?

If you would to like learn more about how solar energy can help lower costs and position your organization for long-term success, please contact Jim Wilhelm, a Director at SC&H Group, here.

SC&H Group’s Tax Services team understands the unique business, economic, and regulatory environments that can impact your organization’s performance – and your tax burden. Contact the SC&H Group Tax Services team here for insights into how you can take advantage of this savings opportunity.