Incentives

Business Incentives: Tax and Depreciation Benefits

The value of a renewable energy PV system is often associated with environmental issues and energy conservation. However, in certain areas, PV systems can provide financial benifits as well. We live in an area with very high levels of sunshine and constantly rising utility prices. A PV system under these conditions is able to pay back its initial investment and earn appreciable amounts of money, especially with help from incentive programs. In Hawaii, a PV system is simply less expensive and more environmentaly friendly than our current energy source.

  • Your net capital investment is a relatively small percentage of the cost of a photovoltaic solution. With just a few pieces of information, we'll break-down the entire investment and tax ramifications for you.

  • 30% corporate tax credit on photovoltaic solar energy systems. No maximums specified for photovoltaic solar energy systems. Ability to carry tax liability back 1 year or forward up to 20 years.

  • 35% business tax credit on photovoltaic solar energy systems. $500,000 maximum credit for commercial property. A credit that exceeds the taxpayer's income tax liability to be carried forward to subsequent years until exhausted.

  • Modified Accelerated Cost-Recovery System (MACRS): Ability to depreciate photovoltaic solar energy systems over an accelerated 5-year period. Available for both Federal and State of Hawaii. Federal basis is entire system cost less one-half the Federal tax credit.