Depreciation of Solar Energy Property
Businesses rely on policy certainty to make long-term investment decisions. The Solar Energy Industries Association (SEIA) supports smart tax policy that drives continued innovation in the solar industry. Depreciation is one aspect of the tax code that facilitates greater investment in renewable energy and ultimately lower costs for consumers.
The Modified Accelerated Cost Recovery System (MACRS), established in 1986, is a method of depreciation in which a business’ investments in certain tangible property are recovered, for tax purposes, over a specified time period through annual deductions.
Qualifying solar energy equipment is eligible for a cost recovery period of five years.
For more information see Depreciation of Solar Energy Property in MACRS