TAX CREDITS
TAX CREDITS
Stellent Infra's Guide to Business Tax Credits Under the
Inflation Reduction Act
The federal income tax credit for solar projects is extended until 2034, ensuring long-term financial incentives for solar investments. The credits break down as follows:
● 30% until 2032
● 22% in 2033
● 10% from 2034 onwards
Owners of new solar systems can now retroactively apply these tax credits to the past three years, enhancing potential returns on investment if the system was placed in service in 2024 or Later
Enhanced Incentives for Specific Areas and Projects:
● Extra 10% for projects in Brownfields, Low-Income, and Tribal Communities.
● Extra 10% for projects in
Brownfields, Low-Income, and Tribal Communities.
● An additional 20% for projects serving qualified low-income areas.
● An additional 20% for projects
serving qualified low-income areas.
● A 10% bonus for projects in regions with retired coal plants.
● A 10% bonus for projects in
regions with retired coal plants.
● Another 10% for using American-made solar equipment.
● Another 10% for using
American-made solar equipment.
These bonuses could increase total tax credit benefits to between 60% and 70%.
Federal grants are also available under the Rural Energy for America Program, with quarterly application deadlines. Stellent Infra can assist you in applying for these grants to enhance your project's return on investment.
● Tax credits must originate from projects started in 2023 or later.
● Tax credits must originate
from projects started in 2023 or later.
● The credits must be sold by the tax return due date of the year they're claimed.
● The credits must be sold by
from projects started in 2023 or later.
● The proceeds from the sale of tax credits are not considered income for the seller.
● The proceeds from the sale of
tax credits are not considered income for the seller.
If you cannot utilize your solar tax credit fully, new provisions
allow you to sell these credits. Currently, they are trading at $0.80 to $0.95 on the dollar:
Important Considerations:
● Each tax credit can only be sold once and must be paid for in cash.
● Each tax credit can only be
tax credits are not considered income for the seller.
● Transactions require buyer indemnification to ensure the validity of the tax credit.
● Transactions require buyer indemnification to ensure the validity of the tax credit.
tax credits are not considered income for the seller.
● Additional insurance might be necessary to cover any liabilities from disputed tax credits.
● Additional insurance might
be necessary to cover any liabilities from disputed tax credits.
Non-profit entities and other specific organizations may directly apply for cash payments instead of tax credits, further enhancing the accessibility of solar investment incentives.
For detailed guidance and to maximize your investment through these tax credits, reach out to Stellent Infra. We offer tailored consultations and can help you navigate the complexities of financial incentives, ensuring you get the most out of your solar investment.
This guide aims to make the tax incentives under the Inflation Reduction Act accessible and understandable for businesses considering solar investments, encouraging them to engage further with Stellent Infra for detailed project assessments and financial consultations.
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Our mission is to empower commercial property owners, homeowners, businesses, and communities to become energy independent, reduce carbon footprints, and save on energy costs. At Stellent Infra, we are dedicated to harnessing the power of the sun to provide innovative and sustainable solar energy solutions.
Driven by a commitment to sustainability, we continuously innovate to improve the efficiency and affordability of solar technology. Join us in making a positive impact on the planet and shaping a greener, more sustainable future.
OFFICE:
5729 Lebanon Rd,
#144210,
Frisco, TX 75034
HOURS:
Mon – Fri
8:00 AM – 5:00 PM CST
CONTACT NO.:
(972) 645-4321
STAY IN TOUCH
© 2024 Stellent Infra
All material presented herein is intended for information purposes only.
Stellent Infra's Guide to Business Tax Credits Under the Inflation Reduction Act
Extended Federal Income Tax Credits The federal income tax credit for solar projects is extended until 2034, ensuring long-term financial incentives for solar investments. The credits break down as follows:
● 30% until 2032
● 22% in 2033
● 10% from 2034 onwards
Owners of new solar systems can now retroactively apply these tax credits to the past three years, enhancing potential returns on investment if the system was placed in service in 2024 or Later
Additional Tax Incentives
● Enhanced Incentives for Specific Areas and Projects:
o Extra 10% for projects in Brownfields, Low-Income, and Tribal Communities.
o An additional 20% for projects serving qualified low-income areas.
o A 10% bonus for projects in regions with retired coal plants.
o Another 10% for using American-made solar equipment.
These bonuses could increase total tax credit benefits to between 60% and 70%.
Support for Energy Community Projects: Federal grants are also available under the Rural Energy for America Program, with quarterly application deadlines. Stellent Infra can assist you in applying for these grants to enhance your project's return on investment.
● Tax credits must originate from projects started in 2023 or later.
● The credits must be sold by the tax return due date of the year they're claimed.
● The proceeds from the sale of tax credits are not considered income for the seller.
Tax Credit Transferability If you cannot utilize your solar tax credit fully, new provisions
allow you to sell these credits. Currently, they are trading at $0.80 to $0.95 on the dollar:
Important Considerations:
● Each tax credit can only be sold once and must be paid for in cash.
● Transactions require buyer indemnification to ensure the validity of the tax credit.
● Additional insurance might be necessary to cover any liabilities from disputed tax credits.
Opportunities for Non-Profits: Non-profit entities and other specific organizations may directly apply for cash payments instead of tax credits, further enhancing the accessibility of solar investment incentives.
For detailed guidance and to maximize your investment through these tax credits, reach out to Stellent Infra. We offer tailored consultations and can help you navigate the complexities of financial incentives, ensuring you get the most out of your solar investment.
This guide aims to make the tax incentives under the Inflation Reduction Act accessible and understandable for businesses considering solar investments, encouraging them to engage further with Stellent Infra for detailed project assessments and financial consultations.
Our mission is to empower commercial property owners, homeowners, businesses, and communities to become energy independent, reduce carbon footprints, and save on energy costs. At Stellent Infra, we are dedicated to harnessing the power of the sun to provide innovative and sustainable solar energy solutions.
Driven by a commitment to sustainability, we continuously innovate to improve the efficiency and affordability of solar technology. Join us in making a positive impact on the planet and shaping a greener, more sustainable future.
OFFICE:
5729 Lebanon Rd,
#144210,
Frisco, TX 75034
HOURS:
Mon – Fri
8:00 AM – 5:00 PM CST
CONTACT NO.:
(972) 645-4321
STAY IN TOUCH
© 2024 Stellent Infra
All material presented herein is intended for information purposes only.