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Accountant

IRS CODE
CHANGE

Renewable-energy tax credits can now be transferred tax-free to independent buyers in the for-profit sphere.

SOLAR TAX INCENTIVES

OE Solar has over 15 years' experience in working with financial institutions and tax credits related to solar projects, comprehensive project analysis, and credited payback periods, and financial modeling to maximize ROI's. We can offer you a clear project plan and guide you in the right direction to make the most of the tax credits available. This page is offered as a resource, and as new information comes available, this page will be updated and OE Subscribers will be notified.

OE Solar is committed to helping you understand how solar tax credits work and will be beneficial to your business operation, saving you money over the lifetime of the system. Solar can be a valuable investment for your business with the multitude of compounding incentives that are offered.  From Federal to State incentives as well as EV Charger tax incentives we have compiled the information here to help you understand the new benefits that are now available to your business organization. Furthermore, many solar tax credits and incentives are available to encourage individuals and businesses to use solar more extensively. It is possible to recoup as much as 50% of the overall project costs in the first year alone. The incentives highlighted below are for corporate clients as this is the niche Market of OE Solar, the only Solar Company in New Mexico that specializes only in Commercial, Government and Small Utility Projects.

FEDERAL TAX INCENTIVES

The Federal Investment Tax Credit (ITC). Businesses that install solar photovoltaic (PV) systems are eligible to receive an (ITC) investment tax credit, which can be used to offset federal tax liability on a dollar-for-dollar basis. If the tax credit exceeds your tax liability, you can roll the credit forward into future tax periods for up to 10 years. Commercially owned PV projects that commence construction in 2022 are eligible to receive a 30% tax credit of the total PV system cost. Implementing

The Federal Investment Tax Credit (ITC)

 

Businesses that install solar photovoltaic (PV) systems are eligible to receive an (ITC) investment tax credit, which can be used to offset federal tax liability on a dollar-for-dollar basis. If the tax credit exceeds your tax liability, you can roll the credit forward into future tax periods for up to 20 years. The tax credit is currently categorized by project size, distinguishing between those under 1MW and those over 1 MW in size. 

 

Projects Under 1 MW in Size

These projects do not need to meet the labor standards of the Inflation reduction act to receive the full 30% ITC tax credit.  These projects can receive the full 30% until 2025!

Projects Over 1MW in Size

These projects receive a 6% base tax credit of 6% when they place the system in service no later that January 1st 2025.

 

Base Credit: 6% - 30% (depending on project status and labor factors)

  • 2024 - 26% Tax Credit 

  • Domestic Content Bonus: 10% additional

  • Energy Community Bonus: 10% additional

  • Low-Income Community Bonus: 10% additional

  • Low-income Residential Building or Low-Income Economic Benefit Bonus: 20% additional

Eligible Technologies

  • Solar PV

  • Energy Storage Systems ESS

Key Factors of the ITC:

  • Upfront Tax Credit: The ITC provides an upfront tax credit that remains consistent regardless of system performance.

  • Attractive for Smaller-Scale PV and CSP Projects: Smaller-scale photovoltaic (PV) and concentrated solar power (CSP) projects often find the ITC more beneficial, especially if they can tap into low-income bonus credits, which are unavailable with the PTC.

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ITC Tax Adders to base 6%

ITC
SustainTaxCredit

Clean Energy STATE TAX INCENTIVES

Solar Market Development Tax Credit

Also known as the Solar Market Development Tax Credit, the NM PV provides a tax credit of 10% for small solar systems, including on-grid and off-grid PV systems and solar thermal systems. The starting date for this tax credit is March 1, 2020, and the tax credit runs through December 31, 2027. There is a cap of $12 million in tax credits to be issued every year on a first-come, first-serve basis. There is a tax credit cap of $6,000 per project.

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EV & BESS STATE INCENTIVES

Commercial Property Assessed Clean Energy

 

C-PACE, short for Commercial Property Assessed Clean Energy, is a groundbreaking financing tool used by local governments. It allows commercial, industrial, and multi-family property owners to finance energy efficiency and renewable energy improvements through their property tax payments. This innovative approach not only reduces the financial burden on property owners but also accelerates the adoption of clean energy technologies.

 

Why is it important? C-PACE addresses two pressing needs simultaneously. First, it enables property owners to access affordable, long-term financing for energy efficiency, renewable energy, and water conservation upgrades in their buildings. This is crucial for reducing our carbon footprint and conserving resources. Second, it stimulates economic growth by creating jobs and fostering innovation in the clean energy sector. It's a win-win for the environment and the economy.

 

Here at OE Solar, we specialize in helping developers navigate the intricacies of C-PACE. Our experts have an in-depth understanding of the program's nuances and can guide you through the entire process. From project assessment and financing to compliance and implementation, we're here to ensure your development not only meets sustainability goals but also maximizes financial benefits.

 

Let us be your partner in building a greener, more prosperous future. Together, we can harness the power of C-PACE to create sustainable, vibrant communities while driving your projects towards success.

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