DSIRE_2010_logoThe Database of State Incentives for
Renewables & Efficiency (DSIRE) 
is a free, comprehensive, user-friendly 
source of information on state, local,
utility, and federal incentives that
 promote renewable energy 
and energy efficiency.

Federal Solar Tax Credit

The Energy Policy Act of 2005 established a 30% tax credit for solar installations. The credit has been extended and amended twice. In 2008 it was extended for 8 more years and a credit cap was removed. It applies to the purchase and installation of photovoltaic (solar electric) and other types of renewable energy equipment. An individual can take both a credit for a photovoltaic system and a credit for other types of renewable energy systems. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. Expenses that may be applied to the tax credit include labor costs for onsite preparation, assembly or installation of the system, and piping or wiring to interconnect the system.

Please use the following link for more information.

Sales and Use Tax Exemption for Renewable Energy Equipment

Colorado exempts from the state’s sales and use tax all sales, storage, and use of components used in the production of alternating current electricity from a renewable energy source. Effective July 1, 2009, through July 1, 2017, all sales, storage, and use of components used in solar thermal systems are also exempt from the state’s sales and use tax. The exemption only applies to state sales and use taxes — not to sales and use taxes assessed by incorporated towns, cities and counties.

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Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2013)

Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. 

The federal Economic Stimulus Act of 2008, enacted in February 2008, included a 50% first-year bonus depreciation (26 USC § 168(k)) provision for eligible renewable-energy systems acquired and placed in service in 2008. The allowance for bonus depreciation has since been extended and modified several times since the original enactment, most recently in January 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331).

Please use the following link for more information.

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Many people believe it is easier to pay a monthly utility bill then face the up front costs of a solar system. Many financing options, rebates and credits exist that can minimize or eliminate the up front costs, and allow solar to be a monthly expense. Home refinancing and equity lines of credit, offer the ability to finance solar systems over many years, while making monthly installments that are usually tax deductible. Please feel free to contact our team at Brightside Solar to discuss any and all options that may work for you.