Guide to Federal Tax Incentives for Solar Energy

SEIA - Solar Energy Industry Association. Version 1.2. May 2006.

The SEIA Guide to Federal Tax Credits for Solar Energy provides comprehensive information as to how the incentives for both commercial and residential applications may be claimed. Key considerations in calculating the value of federal incentives for a solar project include:

  • What types of solar equipment constitute “eligible property” for each of the
    incentives;
  • Amount of the incentives;
  • Conditions for a system to meet the definition of “put in service” (for example,
    the taxpayer must have taken legal title and control of the equipment);
  • The value of the “tax credit basis”;
  • Project timing issues arising from the tax credit window;
  • Ownership structure of the project; and
  • The effect of rebates, state tax credits, and other subsidies on the federal tax
    credits.

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Source: SEIA