Using the sun’s energy is beneficial for your company as well as the world! Making the financial transition to solar power is wise given the rising costs of conventional energy and the increased environmental consciousness. In addition to that, did you realize that there are a plethora of tax credits and incentives available? But navigating the world of tax credits and incentives can feel like navigating a solar eclipse – confusing and dark. Fear not, eco-conscious entrepreneur!

In this blog, let’s delve into the landscape of solar tax breaks and incentives specifically designed for businesses in 2024. Buckle up and get ready to unlock significant savings on your solar journey with Sova Solar!

The Federal Investment Tax Credit (ITC)

The ITC, which offers a massive 30% tax credit on the cost of your solar system (including installation), is the main attraction. Systems put into operation between 2022 and 2032 are covered by this. After that, the percentage gradually drops to 26% in 2033 and 22% in 2034, and the system expires in 2035 (unless it is renewed). Recall that this lowers your tax liability directly because it is a credit rather than a deduction.

Major Benefit to Small Businesses

It may not be possible for you to take advantage of the full benefits of the ITC if your company is in the 25% marginal tax rate. Fortunately, small businesses can deduct up to 100% of the cost of their solar system in the year it is put into service by claiming the Bonus Depreciation deduction, provided their gross receipts are less than $25 million. How about quicker savings?

Incentives based on specific States

Remember the influence your state has! To promote the adoption of solar power, several states provide extra tax credits, rebates, grants, and other incentives. These can differ greatly from state to state, so make sure to find out what’s available. While some may have relatively limited services, others may have large programs. Every little bit helps!

Additional Benefits of Solar Panels

Lower energy bills: By producing free, clean electricity, solar panels greatly reduce your reliance on the grid and consequently your monthly energy expenses.

Improved brand image: Promoting your dedication to sustainability draws in eco-aware clients and investors, which enhances the perception of your business.

The correct knowledge and preparation can make solar energy a game-changer for your company. Keep in mind that you can optimize the available incentives to the fullest extent the earlier you install. Speak with a certified solar installer from Sova Solar; they can evaluate your energy requirements, create a system just for you, and help you with the application process for incentives.