October 10, 2018 @ 11:49a PST, Irvine, California, USA
The Solar Investment Tax Credit, commonly referred to as ITC, is a crucial mechanism of the federal policy which supports deployment and investment in solar energy in the United States. Not many businesses have much to gain by going green. But, this incentive intends to change that by offering substantial tax breaks to all businesses that invest in renewable energy resources.
The investment tax credit allows businesses to deduct 30% of the cost of installing or developing energy systems from their federal taxes. This means that on average, a business can save anywhere up to $9,000 if they take the renewable energy route.
It varies based on the renewable energy project; small wind, fuel cells, and solar energy all qualify for the 30% deduction from the cost of development.
ITC is a part of section 48 of the Internal Revenue Code. It varies based on the renewable energy project; small wind, fuel cells, and solar energy all qualify for the 30% deduction from the cost of development. There is also a 10% credit for microturbines, geothermal, and combined heat and power plants. All of this is to ensure that businesses know the government encourages renewable energy to improve the well-being of our planet.
One of the best things about ITC is that it’s designed to reward businesses for investing in greener or renewable energy projects. Climate change is a serious problem all over the world, and it’s imperative that businesses and individuals start making conscious efforts into eco-friendly measures. The world only has a limited amount of resources, which are running out quickly, and it’s affecting the weather and landscape of our planet drastically.
RELATED STORY: Solar and Wind Energy Generation: The Fastest Growing Segments of Clean Energy
Did you know that 29% of global warming emissions in the United States come from the electricity sector? Most of these emissions come from fossil fuels like natural gas and coal.
In comparison, renewable energy sources have no global warming emissions. The great news is that there are a lot of different sources for renewable energy, and businesses have realized the impact they can have when installed properly. It is not only helping them keep the environment clean, but it’s also improving their production thus reducing their overall cost of assembly.
All major industries in the United States rely on natural gas, oil, and coal for energy, but fossil fuels aren’t renewable, and with their numbers dwindling they are becoming very costly. It also damages the environment and businesses have already started shifting towards renewable energy resources to improve their bottom line, and most importantly, to go eco-friendly.
The United States government rewards businesses that invest in renewable energy resources by offering them incentives up to 30% deductions on their federal taxes.
The United States government rewards businesses that invest in renewable energy resources by offering them incentives up to 30% deductions on their federal taxes. This makes a big difference for small businesses that are trying to get a foothold in the market. They can take advantage from the tax breaks, and can also benefit from an improved image as businesses that are ‘Green’ or use ‘Green Energy’ have a positive exposure in the marketplace.
Ꙉ The greatest way to travel through innovative changes is that of a renaissance man.
ABOUT THE AUTHOR: Jake Cheng is the Director of Business Development for Vasari Energy, Inc., based in Irvine, CA, and has nearly a decade of experience working in the international business development sector focusing on finance, expansion and renewable energy. Jake has worked directly with engineers and environmental specialists in obtaining necessary information for permitting and sourced land deals for potential construction ready assets.
This is a sponsored content by Vasari Energy, a company that seeks to capture growth in the fast-growing solar energy market by investing in the development of utility, commercial, industrial, municipal, and community solar power systems, and by making strategic acquisitions to rapidly build revenue.
