Of the few certainties in life, one of them is taxes. The 2018 tax season is in full swing, and this year it’s imperative to know how the new GOP tax plan will impact your business – especially if it means you can cut yourself a break!
A Major Win for Renewable Energy Supporters – and Their Wallets, Too.
In December of 2017, the Republican Party signed off on a new Tax Cuts and Jobs Act that would aim to cut corporate taxes significantly – from 35 to just 21 percent, to be specific. But where there’s slack given, there may also be slack taken away. The initial version of the House tax bill released in November planned to scale back tax credits for wind and solar energy considerably.
Fortunately, both Iowan and Nevadan senators harshly opposed those proposed changes, and advocates of the renewable energy sectors can now rest easy knowing that the bill largely preserves tax credits for individuals and businesses using wind energy, solar power and electric vehicles.
How Does Investing in Solar Energy Save My Company Money?
Businesses investing in solar energy are eligible for tax credits under the Business Energy Investment Tax Credit (ITC), more commonly referred to as the solar tax credit. Rebates of up to 30 percent of the initial investment are available to companies committed to using wind or solar energy to power their business.
While the ITC has been amended a number of times, businesses can expect to maintain a 30 percent rebate on solar energy construction that begins prior to December 31, 2019. For now, the tax forecast predicts that those rebates will eventually reduce to 10 percent, making a solar energy investment within the next two years a sure win for businesses interested in making the switch.
Do I Qualify for The Rebate?
If you own a solar energy system – whether it be equipment to generate electricity, to heat or cool water, or to provide solar process heat – yes, you qualify for the rebate. If you don’t have enough tax liability to claim the entire 30 percent in one year, you can roll out the remaining credit for future years.
If your business has already installed a solar energy system, be sure to let your accountant know and take advantage of the rebate for the 2018 tax season.
Still have yet to invest? Not to worry. Contact us today and we’ll get you started on the path towards clean, green renewable energy – and a better tax season in 2019.