As 2011 draws to a close, the congress in Washington has had enough trouble tying their shoelaces much less get anything done to help stimulate the economy or to improve the tax burden for the middle-class. So, one of the casualties is certain to be the Section 1603 Treasury Grant for qualified energy equipment.
Slated to expire December 31st, the 1603 grant allowed billions in investment capital to be put into service to develop wind, solar, and other renewable energy projects that bring jobs and new market opportunities (as well as increased grid security) to America. Although there is still a chance for more projects to get a headstart through a 5% Safe Harbor down payment before the end of the year, next year's solar projects will still benefit from the 30% Investment Tax Credit still in play through the end of 2016.
Another silver lining is the continuation of BONUS depreciation for commercial firms who invest and put into service solar equipment through the end of 2012. In January, a 50% Bonus Depreciation is allowed for year one in addition to the standard MACRS depreciation for this type of equipment. One stipulation may be that the equipment must have a usable lifespan of 20 years or less. Talk with your tax advisor for more information on this opportunity.
For any and all solar questions, please feel free to contact Kurt at Solarconnections@gmail.com If I can't answer your question today, I have an extensive network of professionals in this field who can help.