Investing in a brownfield site or near a retired coal-fired power plant? Bringing better jobs to a location with low incomes? Planning to reduce your utility bill?
If your business model incorporates long-term savings with solar energy, you could qualify for bonus tax credits, per new federal guidance unfolding from the Inflation Reduction Act. This is on top of the basic 30% incentives for renewables already being offered as the Investment Tax Credit and Production Tax Credit.
Here are some key sources to watch for continued guidance and eventual application portals:
Department of Energy on Energy Community Tax Credit Bonus
Internal Revenue Service Guidance on Low-Income Communities Bonus Credit
Department of Energy on Low-Income Communities Bonus Credit
IRS on Advanced Energy Project Credit
Domestic Content Bonus Credit IRS Guidance
One Megawatt Exception to Prevailing Wage and Apprenticeship Requirements
Environmental Protection Agency IRA Summary
Not giving tax advice here, simply sharing resources. Check with your own tax expert for what fits your business goals. Should you decide the opportunity is there to receive as much as 50% in tax incentives for upgrading with renewables, be sure to consult a reputable and experienced solar company.
Not ready for renewables yet, but need to save money? Maybe the place to start is a free or low-cost energy audit (check first with your local utility for information) and some conservation measures. A step as simple as more insulation, better windows or an upgraded hvac system could start saving you energy and money each month.
Anne Brock is marketing coordinator for Solar Alliance. She can be reached at: 865-221-8349 or abrock@solaralliance.com.