A 30% tax credit allows the business owner to claim a credit on Federal income taxes worth 30% of the installed cost of a solar facility. There is no maximum set for the credit. There are provisions for carryback of the credit to previous years and carry forward of the credit to future tax years.
Modified Accelerated Cost-Recovery System (MACRS) allows businesses to recover investments in solar property through depreciation deductions. This is achieved through a 5-year tax depreciation schedule, allowing a business to recover a portion of their investment quickly.
Eligible Solar Energy Systems Must Do One (or More) of the Following:*
Heat or cool a building
Provide hot water (for use in a structure, or to provide solar process heat)