Business Solar Tax Calculator
Estimate ITC & Depreciation Benefits
System & Initial Costs
Estimated Annual Financials (for 6 years)
Enter your estimated business taxable income and the applicable federal tax rate for each year. Depreciation reduces taxable income, leading to tax savings based on your rate.
Estimated Tax Benefits
Disclaimer:
- This calculator provides an *estimation* for informational purposes only and is **not tax advice.
- It assumes the solar system is for **business or income-producing purposes** (e.g., rental property) and is subject to the federal business Investment Tax Credit (ITC) under Section 48 and MACRS depreciation.
- The ITC reduces the depreciable basis by half the credit amount.
- Bonus depreciation rates are applied based on the year the asset is placed in service (e.g., 60% for 2024, 40% for 2025). The remaining basis is then depreciated using standard 5-year MACRS rates (20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%).
- **Actual tax benefits can vary significantly** based on your specific business structure (e.g., C-corp, S-corp, partnership, sole proprietorship), other deductions, income levels, and changes in tax laws.
- Always consult with a qualified tax professional (e.g., CPA or Enrolled Agent) to determine your actual eligibility, tax liability, and the most accurate calculation for your business.