Be sure to register early as availability is limited. To search for classes in your area, or register for a class, please visit pge.com or call 800-244-9912.

The IRS offers a tax credit that is equal to 30% of expenditures related to solar installations, with no maximum on the credit amount. This credit will remain available for all eligible systems placed in service on or before December 31, 2016. In addition, for 2011 and 2012, the IRS is allowing 100% and 50% bonus depreciation respectively. This means your taxable income and tax brackets will dictate your direct tax savings from depreciation, but in most cases should result in significant additional first year savings.

Various state utility programs offer cash incentives as well. For example, SMUD and Roseville Electric offer cash rebates through their Expected Performance Based Incentive (EPBI) program and the Performance Based Incentive (PBI) program. In most cases, customers that install solar have the choice of picking either a one-time, up-front rebate based upon the expected performance of your system or continuous rebates based upon actual production of your system over a 5 or 10 year period. Both of these programs significantly reduce the cost of solar installations and should be secured immediately. Each program’s rebates begin to decline as the utility installation targets are met.

If your client is one of the lucky taxpayers that began a solar installation in 2011, they may still be eligible for the expired Federal Section 1603 “Grant in Lieu of Tax Credit”. This program provides a 30% cash refund of the system’s installation costs paid within 60 days of placing your system in service. This refund is in lieu of claiming the income tax credits. It is beneficial for taxpayers who do not have a large income tax liability and cannot utilize all of the tax credits immediately. To qualify for this program, the system must have been 5% completed by December 31, 2011.

Tax year 2012 still looks to be a good year for businesses. With proper planning, purchasing a solar energy system can be a valuable and cost-effective business investment. By securing Federal/State incentives and reducing current electric bills, it is possible to see a complete return on investment in 3 – 5 years. Feel free to contact me with any questions.

This article was provided by
Sherif Boctor, CPA
PSG Certified Public Accountants
Phone: 916-791-3120
Email: sboctor@psgcpas.com

What does this phase out plan mean for you? In order to keep up with federal regulations of energy efficiency, manufacturers will turn their focus to T8 and T5 systems, making the availability of T12 systems progressively less. There may also be an increase in the cost of the T12 systems due to limited supply.

Regulations such as the T12 phase out mandate can create financial hardships for commercial building owners, but there are ways to mitigate the expenses associated with replacement of the old equipment. Rebates from your local energy provider can help offset the costs associated with fixture replacement; but the benefits don’t stop there. The new fixtures will guarantee energy savings, which translates to money savings, in the years to come. Contact your local utility provider to find out more.

The problem for many business property owners is that they lack the time to invest in learning about new technologies, what works best for their building and how to implement them. Perhaps they don’t know anything about energy audits, who performs them and what they cost. The good news is that, even though there are companies that specialize in energy audits and others that offer them as one of their services, many utility providers offer FREE energy audits.

This is good news, not only for property owners, but contractors. For contractors, utilizing the information provided by one of these free energy audits can be a powerful sales tool without incurring up-front costs. Whether the building can benefit from sealing leaks in walls and ceilings, adding high efficiency lights, adding insulation or installing a high efficiency water heater, an energy audit can reveal simple cost-effective ways to reduce energy consumption. By coupling that information with available rebates from the utility provider, your client will see that you have the foresight to look for easy, low cost ways of saving them money. This approach can free up capital that your client can invest in larger ticket items that are also needed, thus, reducing the overall payback period.

Oftentimes the energy saved will be more than the cost of the improvement.

Congressman highlighted the job creation opportunities that could exist if PACE programs were fully operational, especially for the construction industry which has been decimated by the economic recession. The guests also discussed other benefits including increasing property values, providing utility savings and reducing carbon gas emissions. Click here to listen to the radio interview.