What is Depreciation?
The IRS defines depreciation as: “an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property.” Currently, the system that determines those deductions for business investments is called the Modified Accelerated Cost Recovery System (MACRS), established in 1986.
What is Depreciation?
The IRS defines depreciation as: “an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property.” Currently, the system that determines those deductions for business investments is called the Modified Accelerated Cost Recovery System (MACRS), established in 1986.
Most solar energy equipment is eligible for depreciation for a period of five years. Combining the benefits of depreciation with the federal Investment Tax Credit (ITC) allows businesses to greatly accelerate the rate of return on a solar installation.
You can find more information and details on solar property depreciation at this link.
Securing your energy with solar can save you money now and in the future.
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