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A Refresher On Current Solar Tax Incentives: It’s Important To Act Fast

Published: October 15th, 2019

By: Michael D. Minton Dana M. Apfelbaum

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In an article published by Solar Industry Magazine on October 10, Michael Minton and Dana Apfelbaum discuss solar tax incentives and how to take advantage of these opportunities.

Code § 48(a) provides for an energy credit, commonly known as the investment tax credit (ITC), equal to 30% of the cost basis of qualifying energy property placed in service during a taxable year if the construction begins before Jan. 1, 2022. “If you are interested in taking advantage of the ITC, don’t wait to convert,” the attorneys explain. “For properties on which construction begins after Dec. 31, 2019, there is a phase-out of this credit. Additionally, if the energy property is not placed in service before Jan. 1, 2024, the credit is limited to 10%.”

In Florida, specifically, the property tax exemption available for solar energy systems was expanded effective Jan. 1, 2018. The exclusion extends to 80% of the assessed value of such systems installed on or after Jan. 1, 2018, for non-residential properties. “Eligible solar energy source devices include portions of the system up to the point of interconnection to an electric utility’s distribution grid or transmission lines,” Minton and Apfelbaum continue. “These changes to the law are scheduled to expire at the end of 2037. New regulations governing the terms of contracts for the sale or lease of solar energy systems, including numerous required disclosures, became effective July 1, 2017.”

It is important to be mindful of the fact that many of the incentives contained in this article have time limitations, making early participation potentially more advantageous due to phase-outs or limited availability,” they advise. “Contact your tax advisor to take advantage of these opportunities.”

For the full article, click here.