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Federal Tax Credit:
The 30% federal tax credit is available through 2016.
Solar. The credit is equal to 30% of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible.
Available to commercial, industrial, and agricultural projects
30% tax credit on the installed value of the system.
Authority 1: 26 USC § 48
Authority 2: Instructions for IRS Form 3468
Authority 3: IRS Form 3468
Federal Depreciation:
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes a variety of solar-electric and solar-thermal technologies.
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US06F&re=1&ee=0
NOTE: In 2011, there is a 100% bonus depreciation allowing a solar project to be completely depreciated in the first year. Eligible property placed in service after September 8, 2010 and before January 1, 2012 qualifies for 100% first-year bonus depreciation. In 2012, this bonus will revert to the previous 50% for one year and then expire.
Authority 1: 26 USC § 168
Date Effective: 1986
Authority 2: 26 USC § 48
Authority 3: H.R. 4853
Date Enacted: 12/17/2010
Date Effective: 09/09/2010 (retroactive, 100% bonus depreciation)
Expiration Date:
12/31/2011 (100% bonus depreciation)
12/31/2012 (50% bonus depreciation)
Authority 4: IRS Rev. Proc. 2011-26
Date Enacted: 04/18/2011
Date Effective: 03/29/2011
Reference: http://www.dsireusa.org/