![Home Solar Panels in San Diego](/uploads/1/9/8/8/19886979/5324905.jpg)
Home Solar Panels in San Diego: Saving Money by Saving the Environment
Home Solar Panels in San Diego are giving families the opportunity to switch to free energy provided by the sun, a renewable source of energy. By a rather simple process, solar panels capture the energy from the sun and convert it into energy to feed your appliances and toys.
By switching to home solar panels in San Diego, you will find yourself free of paying your monthly utility bill. If you decide to buy the solar panel system, you will be doing an excellent investment that will pay off in the years to come.
On this blog you will find some of the incentives you could receive when switching to home solar panels in San Diego. By the way, solar energy is available to anybody, for residential, businesses, or commercial energy needs. Still, these incentives apply to you when you buy the solar panels system. The reason why you get financial support from so many organizations is because we are already in an energy crisis situation, and unless we all work together, we may all lose.
Home Solar Panels in San Diego: The Alternative Minimum Tax
Beginning in 2009 taxpayers (individuals and businesses) will be able to claim the federal ITC even if they are subject to the Alternative Minimum Tax (AMT).
Systems placed in service before the end of 2008 can suffer AMT limitation because the solar ITC (and Accelerated Depreciation discussed in the next section) are ‘Tax Preference Items’ that can cause AMT and limit the enjoyment of the ITC benefit, even if the taxpayer wasn’t subject to AMT before getting the solar system. Even with the ITC “AMT relief” starting in 2009, the Accelerated Depreciation may still cause an AMT situation for businesses.
There is an open question in the solar industry about the application of the ITC to “property used for lodging”. Sec. 50(b)(2) indicates that the Federal ITC is not available for “property used for lodging”. This sentence has created a fair bit of concern for the solar industry, because it appears to exclude hotels/motels and rental property.
However, Sec. 50(b)(2)(D) seems to exempt “Any energy property” (which solar is as defined in Sec. 48(a)(3)(A)(i) “equipment which uses solar energy to generate electricity”) from this exclusion.
Note: Please seek qualified tax advice before accepting anyone’s claims of applicability of these or other tax benefits to a particular situation.
Home Solar Panels in San Diego: The State Income Tax Credits
State Income Tax Credits are available in several states, such as Oregon, Hawaii, New Mexico, and New York, and can be quite generous. However, potential recipients should be aware that if they itemize their federal tax deductions, a state tax credit isn’t worth its full face value.
When itemizing, state taxes are usually deductible off federal taxable income.
Reducing state taxes by the state tax credit means that federal taxable net income will go up. In effect, federal income tax will be paid on the value of the state tax credit. For most people, a state tax credit is worth about 65-85% of its face value.
Home Solar Panels in San Diego: Depreciation and Accelerated Depreciation
Depreciation and Accelerated Depreciation may be a possibility for business owned systems.
Depreciation is a method of ‘writing-off’ expenses for long lasting (durable) goods such as cars, computers, etc. The ‘write-off’ is generally required to be spread over several years, depending on the type of property.
Since depreciation is a write-off, it reduces taxable income, and thus reduces tax liability. The net federal benefit of depreciation is the federal tax rate times the federal depreciation basis. The federal depreciation basis amount is the federal ITC basis, minus one-half the federal ITC amount (85% of the ITC basis in the case of the current 30% ITC). For example, a system costing $100K (ignoring any rebate for this example) would have a tax credit basis was $100K, and thus receive a $30K federal ITC (30%).
Its federal depreciation basis would be $85K ($100K minus one half of the $30K ITC). If the customer’s federal tax rate were 28%, the federal depreciation benefit would be approximately $24K ($85K times 28%).
The state depreciation benefit is the state tax rate times the state depreciation basis, which may be different from the federal depreciation basis, and may be affected by any state rebates received.
Unfortunately, for the same reasons that state income tax credits aren’t really worth their face value, similarly, the state depreciation net benefit must factor in the effective federal taxation effect of reducing state taxes.
Home Solar Panels in San Diego: Act Now
We would like to partner with you, so you can receive FREE ENERGY from now on. Our Home Solar Panels in San Diego are available for all neighborhoods in San Diego, and the cities of National City, Chula Vista, El Cajon, La Mesa, Spring Valley, Lemon Grove, Santee, Point Loma, Mission Valley, Mid-City, Coronado, Lakeside, Rancho San Diego, Otay Ranch, Bonita, La Joya, Pacific Beach, Imperial Beach, San Ysidro, and Tijuana. For other cities, please contact us.
Click here to receive your FREE estimate for a Home So Panels on Houses in San Diego.
Play Clean. Go Solar!
Get Energy From Solar Power
Home Solar Panels in San Diego are giving families the opportunity to switch to free energy provided by the sun, a renewable source of energy. By a rather simple process, solar panels capture the energy from the sun and convert it into energy to feed your appliances and toys.
By switching to home solar panels in San Diego, you will find yourself free of paying your monthly utility bill. If you decide to buy the solar panel system, you will be doing an excellent investment that will pay off in the years to come.
On this blog you will find some of the incentives you could receive when switching to home solar panels in San Diego. By the way, solar energy is available to anybody, for residential, businesses, or commercial energy needs. Still, these incentives apply to you when you buy the solar panels system. The reason why you get financial support from so many organizations is because we are already in an energy crisis situation, and unless we all work together, we may all lose.
Home Solar Panels in San Diego: The Alternative Minimum Tax
Beginning in 2009 taxpayers (individuals and businesses) will be able to claim the federal ITC even if they are subject to the Alternative Minimum Tax (AMT).
Systems placed in service before the end of 2008 can suffer AMT limitation because the solar ITC (and Accelerated Depreciation discussed in the next section) are ‘Tax Preference Items’ that can cause AMT and limit the enjoyment of the ITC benefit, even if the taxpayer wasn’t subject to AMT before getting the solar system. Even with the ITC “AMT relief” starting in 2009, the Accelerated Depreciation may still cause an AMT situation for businesses.
There is an open question in the solar industry about the application of the ITC to “property used for lodging”. Sec. 50(b)(2) indicates that the Federal ITC is not available for “property used for lodging”. This sentence has created a fair bit of concern for the solar industry, because it appears to exclude hotels/motels and rental property.
However, Sec. 50(b)(2)(D) seems to exempt “Any energy property” (which solar is as defined in Sec. 48(a)(3)(A)(i) “equipment which uses solar energy to generate electricity”) from this exclusion.
Note: Please seek qualified tax advice before accepting anyone’s claims of applicability of these or other tax benefits to a particular situation.
Home Solar Panels in San Diego: The State Income Tax Credits
State Income Tax Credits are available in several states, such as Oregon, Hawaii, New Mexico, and New York, and can be quite generous. However, potential recipients should be aware that if they itemize their federal tax deductions, a state tax credit isn’t worth its full face value.
When itemizing, state taxes are usually deductible off federal taxable income.
Reducing state taxes by the state tax credit means that federal taxable net income will go up. In effect, federal income tax will be paid on the value of the state tax credit. For most people, a state tax credit is worth about 65-85% of its face value.
Home Solar Panels in San Diego: Depreciation and Accelerated Depreciation
Depreciation and Accelerated Depreciation may be a possibility for business owned systems.
Depreciation is a method of ‘writing-off’ expenses for long lasting (durable) goods such as cars, computers, etc. The ‘write-off’ is generally required to be spread over several years, depending on the type of property.
Since depreciation is a write-off, it reduces taxable income, and thus reduces tax liability. The net federal benefit of depreciation is the federal tax rate times the federal depreciation basis. The federal depreciation basis amount is the federal ITC basis, minus one-half the federal ITC amount (85% of the ITC basis in the case of the current 30% ITC). For example, a system costing $100K (ignoring any rebate for this example) would have a tax credit basis was $100K, and thus receive a $30K federal ITC (30%).
Its federal depreciation basis would be $85K ($100K minus one half of the $30K ITC). If the customer’s federal tax rate were 28%, the federal depreciation benefit would be approximately $24K ($85K times 28%).
The state depreciation benefit is the state tax rate times the state depreciation basis, which may be different from the federal depreciation basis, and may be affected by any state rebates received.
Unfortunately, for the same reasons that state income tax credits aren’t really worth their face value, similarly, the state depreciation net benefit must factor in the effective federal taxation effect of reducing state taxes.
Home Solar Panels in San Diego: Act Now
We would like to partner with you, so you can receive FREE ENERGY from now on. Our Home Solar Panels in San Diego are available for all neighborhoods in San Diego, and the cities of National City, Chula Vista, El Cajon, La Mesa, Spring Valley, Lemon Grove, Santee, Point Loma, Mission Valley, Mid-City, Coronado, Lakeside, Rancho San Diego, Otay Ranch, Bonita, La Joya, Pacific Beach, Imperial Beach, San Ysidro, and Tijuana. For other cities, please contact us.
Click here to receive your FREE estimate for a Home So Panels on Houses in San Diego.
Play Clean. Go Solar!
Get Energy From Solar Power