Company News

How The New Tax Bill Can Help Your Commercial Solar Business Financially

placeholder+imagePosted on: 06/12/2018

The new tax bill that was implemented this January provided good news for solar businesses and for companies interested in going solar. First, the bill reduced the corporate tax rate of commercial entities that include solar PV systems. Before, solar companies were saving money on operating expenses, but making up for it with a higher tax liability. The new tax bill lowered the federal corporate tax rate from 35 to 21 percent, making solar buildings more profitable for the company.

Additionally, the new tax bill included a revision on the depreciation expense of a new asset. Depreciation allows for a company to reduce their taxable profits as the asset ages. Originally, the tax law allowed corporations a 50% bonus depreciation of a new asset in the first year, and the remaining value over the next five and a half years. In the new tax bill, however, 100% of the asset’s value can be covered as depreciation in the first year. Since solar PV systems are included as a new asset to companies, businesses have an opportunity to lower their tax liability over the course of one year, instead of five, with their solar systems.

Commercial solar PV entities will see a higher return on investments, increase net present values and shorter payback periods. How can you say no to going solar after this new bill that allows your company to benefit financially and your community to benefit ecologically?

To learn more about this bill visit these websites: