Commercial Services
MSL Commercial
Getting Started
Federal Tax Credits
The Section 179 Reduction. What is the Section 179 Deduction?
MSL Commercial
The California Solar Initiative provides rebates for solar electricity systems on existing non-residential buildings such as:
- Agriculture
- Commercial Buildings
- Industrial Buildings
- Local Government
- Nonprofit Buildings
- Solar Schools
Getting Started
MSL Solar will file all the documentation required by with the electric company, please consult with your accountant for the following information.
The California Solar Initiative offers cash back for installing solar on your existing business.
California is striving to create thousands of megawatts of new solar-generated electricity, moving the state towards a clean energy future. And you can help!
Join the thousands of business owners who have earned cash back rebates by installing solar energy systems through the California Solar Initiative. Customers earn cash rebates for every watt of solar energy generated on homes, businesses, farms, schools, and government and non-profit organizations.
Federal Tax Credits
On October 3, 2008 H.R.1424, the Emergency Economic Stabilization Act of 2008 was passed. Division B of this bill includes the Energy Improvement and Extension Act of 2008. This landmark legislation extends critical Federal Investment Tax Credits for solar customers and other renewable energy projects. This bill contains $18 billion in incentives for clean and renewable energy technologies, as well as for energy efficiency improvements.
See the entire bill, including Division B: Energy Improvement and Extension Act of 2008.
As part of this legislation, the solar investment tax credit (ITC) has been extended for 8 years through December 31, 2016. Here are the key provisions of the ITC:
- The 30% federal investment tax credit for both residential and commercial solar installations is extended for 8 years through December 31, 2016.
- Eliminates the $2,000 cap on the tax credit for the purchase and installations of solar electric on residential properties.
- The addition of small wind energy and geothermal heat pump projects as qualifying installations for tax credits.
- Utilities may now benefit from the credit as eligible tax credit recipients.
- Extends through 2009 the authority to issue clean renewable energy bonds.
The Section 179 Reduction. What is the Section 179 Deduction?
Most people think the Section 179 Deduction is some arcane or complicated tax code. It really isn't, as the following will show you.
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the US Government to encourage businesses to buy equipment and invest in themselves. It is sometimes referred to as the "SUV Tax Loophole" or the "Hummer Deduction" because many businesses have used this tax code to purchase qualifying vehicles (like SUV's and Hummers.)
Section 179 does come with limits - there are caps to the total amount written off ($250,000 in 2009), and limits to the total amount of the equipment purchased ($800,000 in 2009.) The deduction begins to phase out dollar for dollar after 800k, so this makes it a true small and medium-sized business deduction.
However, in 2009, businesses that exceed the $250k deduction limit can take a bonus depreciation of 50% on the amount that exceeds the limit. And then also take normal depreciation on the rest. Nice.
Who Qualifies for Section 179?All businesses that purchase or finance less than $800,000 in business equipment should qualify for the Section 179 Deduction. In addition, most tangible goods qualify for the Section 179 Deduction (see list of qualifying equipment). Also, to qualify for the Section 179 Deduction, the equipment purchased must be placed into service between January 1, 2009 and December 31, 2009.
Give us a call or send us an e-mail with your request for a free MSL Solar energy evaluation and investment review.
