Investment Tax Credits (ITC)
Investment Tax Credit (ITC) which is a federal tax incentive. For systems done by 2032, they are eligible for a 30% ITC based on the cost of the project based on the Inflation Reduction Act signed in 2022 (1MM Project = $300K worth of dollar-for-dollar tax credits). Also, per the Inflation Reduction Act, non-profit companies will receive a check for the value of what the tax credits would be. This drastically shortens the payback period for these projects.
Bonus Depreciation
Bonus depreciation is federal incentive that allows a company 80% depreciation in the first year, with the remaining 20% being applied to the 5-year MACRS schedule. Typically, this is done over the useful life of an asset. Allowing a company to do this is a large tax shelter.
Increased CAP Rate
Capitalization rate (Cap Rate) is the rate of return on a real estate investment property based on the income that the property is expected to generate. Investors typically make their decisions to buy property, based on a large extent, to the Cap Rate. Until recently, solar was simply a way to harvest renewable energy and save money on electric expenses. Adelaide Energy will work with you to not only save money and be a more environmentally conscious company but generate income and increase your Cap Rate. We like to say it’s truly a way to “Make Green With Green”. Adelaide Energy has the knowledge and experience to help your company both save money and increase your Cap Rate. If you are a commercial property owner, Adelaide Energy can help. If you are a property owner in any of the following sectors, reach out to get started “Making Green With Green”
At Adelaide Energy, we do what we say we’re going to do when we say we’re going to do it! We strive to build enjoyable, fun, and engaging working relationships with our clients to build a sustainable energy future and create great investment returns. We will work hard make sure your unique project requirements are accommodated at every opportunity before, during and after the project!
State and Local Incentives
Examples of state incentives include, Smart Inverter Rebates, solar property and sales tax exemptions, Grants, Solar Renewable Energy Credits, Performance Based Incentives, and more.