This abrupt termination of the 1603 Grant is unfortunate, but the current global economic trends and solar panel overstock for 2011 have sent clean energy project costs to low levels; a boon to those looking to invest in a solar power system.
But thanks to tax credits and grant funding, including the 1603 Grant program, the 2009 enhanced Investment Tax Credit and the recently signed into law 'Fair Permit Act', solar projects in Colorado and other parts of the US have never been more affordable.
There is no way sure way to tell when solar panel prices will go back up, but combined with the current federal grant opportunities, now is the time to invest - Before these grant opportunities are gone forever.
Treasury Grant Programs, the 1603 Grant -
The United States Treasury offers grant programs to entities making use of clean energy equipment. According to the Modified Accelerated Cost Recovery System (MACRS), taking advantage of the available grants and rebates allows the benefactor to potentially deduct 85 % of relevant taxes.
Under the 1603 Grant Treasury Program (an extension of the 707 program), specified energy projects, including clean power projects utilizing solar, may be eligible for payments instead of tax credits. This means a commercial business looking to invest in
a solar power system is potentially eligible to receive a thirty percent funding grant for
their overall project cost.
Contact Syndicated Solar today, for more information on what the 1603 Grant can do for your business.
Federal Tax Credit and the (ITC) Investment Tax Credit -
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The Federal Investment Tax Credit program is available for businesses seeking to benefit from solar or other forms renewable energy. In accordance with Section 28 of the Internal Revenue Code, residential homeowners can apply for a 30% uncapped tax credit. The same tax credit is available for residential homeowners under section 25D. The ITC program is another excellent way to save money while investing in clean energy.
For more information on how the Federal Investment Tax Credit can help you finance a solar energy system for your home or business, please contact syndicated solar.
Accelerated Depreciation Won't Last Long -
Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which allows the owner of qualifying equipment including qualifying solar equipment to deduct 85 percent of their tax basis using either the commercial ITC or the Treasury Grant Program. This form of depreciation can be claimed over a five year period.
Recent Changes to MACRS: 100 Percent Expensing
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included provisions that allow companies to elect a 100 percent through 2011 and a 50 percent bonus depreciation through 2012.
The 100 percent expensing is a way for companies with qualified, new projects to depreciate 100 percent of the capital investments if their solar systems have begun service between September 8, 2010 and December 31, 2011. For companies that get their solar systems up and running after 2011, the bill contains a 50 percent bonus depreciation provision which companies can elect for qualifying property through December 31, 2012.
Colorado Solar Power Becomes More Affordable - the Fair Permit Act
As of June 10th, 2011, the Colorado Governor's Energy Office has implemented a new clean energy rebate program. Available to homeowners and small businesses, the Fair Permit Act has capped the cost of government-issued permit fees for Colorado solar installations. Nationwide, residents can expect to pay around $2,516 in fees to have solar installed on their home, while large-scale, corporate installations can exceed $100,000. The Fair Permit Act limits solar permit fees for systems up to 2 MW worth of power at $500 for residential installations or $1,000 for businesses.
Visit our page on the Fair Permit Act for more information on how it can benefit your Colorado home or business.
Oversupply and Falling Prices of Solar Panels
In addition to tax incentives like the Investment Tax Credit, the solar industry market locally and abroad has seen a noticeable drop in demand for solar panels for installations. Thanks to the over-saturation of panels, businesses and residents looking to invest in a solar energy system can expect to pay a lower purchase cost for panels. Though these relaxed prices may not last forever.
With the expiration of the 1603 Grant imminent, businesses will be rushing to qualify for solar installation tax credits before the end of the year, and be eager to take advantage of these lower solar panel prices. The solar panel surplus of 2011 will rapidly dry up into 2012 and this great investment opportunity will be gone.
Now is the Time to Go Solar
These federal programs are coming to an end in the very near future. The 1603 Grant Program expires on December 31, 2011 and solar companies must absolutely make sure to have their projects submitted by that date and then completed no later than December 31, 2016 in order to qualify for the generous grant funding the 1603 Grant can provide. Additionally, the Investment Tax Credit program is also in effect through December 31, 2016.
Low costs, in addition to all the government incentives, like the 1603 Grant program and the Investment Tax Credit, may make 2011 as good a time as any to invest in the future with a clean energy project. With the disappearance of several of these great solar financing opportunities at the end of 2011, now is the time to take advantage of these great opportunities:
- 1603 Grant: Receive federal grant money for your solar project! Applications will no longer be accepted after the end of the 2011 calendar year.
- Investment Tax Credit: The ITC will remain available for another five years, but coupled with the soon-to-expire accelerated depreciation offered by the Modified Accelerated Cost Recovery System, the sooner you sign up, the more money you can save on your taxes.
- Modified Accelerated Cost Recovery System: The opportunity to apply for 100 percent depreciation of capital investments for qualifying solar systems expires December 31, 2011. The opportunity to apply for 50 percent depreciation for qualifying property expires December 31, 2012.
- The Fair Permit Act: A great program for innovative and environmentally conscious residents or investors in scenic Colorado to save on solar permitting costs.
- Low energy equipment costs: Panels and other energy equipment costs have fallen this year. This is a great time to invest in equipment and various cost saving programs; there is no way of telling when prices will again be this affordable!