@@sokbok That's correct! We recently published an updated video about the ITC if you want to learn more: th-cam.com/video/wYGdf_4qRvI/w-d-xo.htmlsi=XaueXV8kZyDr0tYN
I have a couple of questions 1. If I buy a solar power plant, the solars were placed in service in 2021, what’s my ITC %? Is there a max number or % for ITC 2. If I purchase the solar plant for 6M, how much of bonus depreciation can I take in year one. Is it more beneficial to use MACRS? 3. Is MACRS also subject to reduction by half of ITC %? 4. How long do I have to keep the solar plant for if I take bonus depreciation or MACRS? Really appreciate the contents
Thanks for your questions! Take a look at our responses, below. However, at Pivot, we are not tax professionals and cannot provide specific guidance -- please consult your accounting and tax professionals for more detailed information specific to your system! 1. The ITC in 2021 was 26% for systems that were place in service in 2021. Due to the passage of the Inflation Reduction Act (IRA) the ITC is now 30% in 2022 and will stay at that level for the next 10 years. 2. Solar is eligible for 100% bonus depreciation in the first year. The depreciable basis is the total cost less half of the ITC% (total cost - (total cost x 15%) then the cash value of depreciation is based on that value multiplied by the composite tax rate. 3. Our understanding is that is correct, the depreciable value is subject to reduction by half the value of ITC as outlined in the answer above. 4. The ITC "vests" at 20% per year for five years, so in order to not be subject to a clawback of the tax credit, the system would have to remain under the same ownership for five years.
Question want to take advantage of this if I can my situation we are planning to move in about 2 years and planning to get solar now. If I was the rent this house after moving can I still depreciate once it becomes a rental? How would the time frame work since it’s up to 5 yrs am I still able to depreciate the best 1st year?? Should we wait then if that’s the case or move out sooner thanks?
Can the MACRS be used on a home residential solar project where I over produce and sell it back to the Electric Company? or is this strictly to a commercial business application?
Have any questions about solar depreciation? Leave them below and we'll get right back to you!
isnt it correct that the ITC went to 30% in 2023?
@@sokbok That's correct! We recently published an updated video about the ITC if you want to learn more: th-cam.com/video/wYGdf_4qRvI/w-d-xo.htmlsi=XaueXV8kZyDr0tYN
Great information ✅
. 🗣Thanks
I have a couple of questions
1. If I buy a solar power plant, the solars were placed in service in 2021, what’s my ITC %? Is there a max number or % for ITC
2. If I purchase the solar plant for 6M, how much of bonus depreciation can I take in year one. Is it more beneficial to use MACRS?
3. Is MACRS also subject to reduction by half of ITC %?
4. How long do I have to keep the solar plant for if I take bonus depreciation or MACRS?
Really appreciate the contents
Thanks for your questions! Take a look at our responses, below. However, at Pivot, we are not tax professionals and cannot provide specific guidance -- please consult your accounting and tax professionals for more detailed information specific to your system!
1. The ITC in 2021 was 26% for systems that were place in service in 2021. Due to the passage of the Inflation Reduction Act (IRA) the ITC is now 30% in 2022 and will stay at that level for the next 10 years.
2. Solar is eligible for 100% bonus depreciation in the first year. The depreciable basis is the total cost less half of the ITC% (total cost - (total cost x 15%) then the cash value of depreciation is based on that value multiplied by the composite tax rate.
3. Our understanding is that is correct, the depreciable value is subject to reduction by half the value of ITC as outlined in the answer above.
4. The ITC "vests" at 20% per year for five years, so in order to not be subject to a clawback of the tax credit, the system would have to remain under the same ownership for five years.
@@PivotEnergySolar thank you you’re awesome
Question want to take advantage of this if I can my situation we are planning to move in about 2 years and planning to get solar now. If I was the rent this house after moving can I still depreciate once it becomes a rental? How would the time frame work since it’s up to 5 yrs am I still able to depreciate the best 1st year?? Should we wait then if that’s the case or move out sooner thanks?
Can the MACRS be used on a home residential solar project where I over produce and sell it back to the Electric Company? or is this strictly to a commercial business application?
Thanks for your question! MACRS is only available for commercial/business entities.