Federal Tax Credit
The federal solar income tax credit is 30% of the total system cost. There is no cap and it can be carried forward 20 years and back one year, if needed.
Set to drop to 26% for systems installed after December 31, 2020, 22% in 2021, and 10% in 2022, where it will remain.
Solar installations can be depreciated using either a five years MACRS schedule or 100% bonus depreciation for systems installed after Sept 27th, 2018 and before January 1st 2023. The tax basis for depreciation is equal to the total system cost, minus 50% of the federal tax credit, and is valued at approximately 15% of the system cost.
The USDA's Rural Energy America Program provides grants and loan guarantees to 'rural' small businesses outside of a census metro area (including Green Valley and Sahuarita) and agricultural producers (including plant nurseries) to deploy renewable energy systems and energy efficient measures. The grant is for up to 25% of the total project cost.
To see if your business qualifies as 'rural' input your address here: Property Eligibility Search