How-To Articles

How to Maximize Federal Tax Credits

Strategies for maximizing federal energy tax credits including ITC optimization, depreciation benefits, and tax planning considerations.

Promise Energy Team2024-02-077 min read

ITC Optimization

Claim 30% Investment Tax Credit on all eligible costs including equipment, installation, and related improvements. Include battery storage and EV charging for additional credits.

Depreciation Strategies

Use 5-year MACRS depreciation for 85% of system cost. Consider 100% bonus depreciation or Section 179 immediate expensing up to $1 million for maximum first-year benefits.

Tax Planning

Coordinate with tax advisors to optimize timing and structure. Consider tax appetite, carry-forward provisions, and passive loss limitations. Financing structure affects tax benefit realization.

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Written by

Promise Energy Team

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