Rebates & Incentives
We are proud to be a Program Sponsor for many of the incentive and rebate programs offered by local Utilities throughout the United States. Our design team can process and facility the rebate and incentive process from start to finish. To learn more about rebates and incentives offered in your area, please call the number below to start a conversation.
ITC (Solar Tax Credit)
For years, business owners who purchased a solar energy system enjoyed a 30% ITC to help offset the cost of the system. It works like this: purchase and install a solar panel system on your facility and receive 30% of the cost of the entire system (including parts and labor, after state and local grants) as a credit back to you when you file your federal taxes, up to the full amount of taxes you owe. If you don’t owe enough in taxes to get the full credit this year, you can “roll over” the remaining amount into future years as long as the credit is still in effect.
For example, if you spend $30,000 installing a solar array at your business, your ITC would be 30% of $30,000, or $9,000. If you’ve paid $9,000 or more in taxes that year, you’ll get a $9,000 refund check when you file your taxes, so the net cost of your system would be $21,000. (If you only paid $6,000 in taxes in that year, you would have $3,000 in “credit” that you could claim in a future year.) Pretty nice, considering you’ll also be saving money on electricity for the next couple of decades.
Businesses can also combine the ITC with any other rebates or incentives to further reduce the cost of the system. For instance, if your local utility offers a rebate, you can take the full rebate plus the ITC – in some cases, reducing the cost of the system by 50% or more!
Here’s the catch: 2019 is the last year businesses can take advantage of the full 30% tax credit. After this year, the ITC will begin to shrink – to 26% in 2020 and 22% in 2021 – and will be gone completely in 2022. This applies to residential solar installations only. Commercial solar installations will still receive a 10% ITC from 2022 forward.
2019 Tax Incentives: Section 179
Tax provisions accelerate depreciation on qualifying business equipment, office furniture, technology, software and other business items. When you finance such purchases with Ascentium Capital, you may deduct a significant portion, up to $1,020,000 in 2019 (to be adjusted for inflation in future years). There is a dollar-for-dollar phase out for purchases over $2.55 million. Additionally, for 2019 bonus depreciation remains at 100% on qualifying assets. Consequently, not only will Section 179 help bolster your bottom line, you garner the benefits of new equipment and technology that will help grow your business.
To capture these tax savings, qualifying property must be placed in service before December 31, 2019. Simply choose your business equipment and Ascentium will design payments to help you make a profitable decision.