Save on Solar Water Heating Installation
Eligible commercial and multifamily property owners may also be able to reduce their business’s tax liability through the federal business energy investment tax credit (ITC) and accelerated depreciation.
26% federal tax credit
Businesses and multifamily properties may be able to claim the ITC. This federal tax credit covers up to 26% (2020 rate) of the cost of a new solar water heating system, including equipment and installation. Please note that beginning in 2020, the credit has begun to step down.
Available Tax Credit
2022 and on
For questions regarding the tax credit, speak with your company’s tax professional.
Established in 1986, federal accelerated depreciation standards set by the Modified Accelerated Cost Recovery System (MACRS) have helped businesses make critical investments in long-term renewable energy. Solar water heating systems are eligible for MACRS, which may allow your business to further reduce the cost of a SWH system. We suggest consulting your tax professional to see if you can take advantage of the accelerated depreciation tax credit.