Federal

Visit the IRS website for information on tax credits. Investment Tax Credit     •     For solar systems installed from January 2006 through December 2008, the federal government offers an Investment Tax Credit (ITC) of 30% of the net system cost for commercial systems.     •     For the same time period, residential systems are also eligible for an ITC of 30% of the net system cost, up to a ceiling of $2,000.     •      Government and non-profit systems are not eligible for the 30% ITC.   5-Year Accelerated Depreciation Schedule The federal Internal Revenue Code (IRC) has special depreciation provisions for solar systems. They can be depreciated on a 5-year accelerated schedule, or on the regular depreciation schedule. The depreciable basis is calculated as the system cost minus one-half of any federal tax credit, or 85% of the system cost. These provisions are found in IRC section 179. Eligibility for the above solar incentives vary from individual to individual. Please consult your tax advisor regarding your system-specific eligibility. Highlights of the Energy Policy Act of 2005 for Individuals U.S. Dept of Energy Energy Star Tax Incentives Assistance Project (TIAP)

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