SunWize
Power Systems Division
SunWize is a solar energy company specializing in the design and installation of residential and commercial grid-tied solar electric systems in California and Oregon. Outside these regions, home and business owners are served by a nationwide network of SunWize Independent Installers.
California Contractors
License No. 890619

Irvine Office
43 Corporate Park, Suite 202
Irvine, CA 92606
Ph: 949-417-0750
Fax: 949-417-0775
email: systemsinfo@sunwize.com

Palm Desert Office
34330 Gateway Drive, Suite 100
Palm Desert, CA 92211
Ph: 760-360-1620
Fax: 760-360-1357

Rancho Cucamonga Office
8830 Rochester Ave., Suite 100
Rancho Cucamonga, CA 91730
Ph: 909-484-5474
Fax: 909-984-5721

San Jose Office
111 W. St. John Street, Suite 1200
San Jose, CA 95113
Ph: 408-510-5099

Willamette Valley
Oregon Office
1337 Main Street
Philomath, OR 97370
Ph: 541-929-9999
Fax: 541-929-8377
Oregon Contractors
License No. 186663

Solar Tax Credit and Solar Grant Programs

US Treasury offers Tax Credits or a Solar Grant Equal to 30% of the Cost of Commercial Solar Projects Started in the Next Two Years

Key Features Relating to Commercial Solar Projects

For 2009 and 2010 projects, solar projects that are eligible for depreciation or amortization (typically those owned by corporate tax filers) can receive a 30% upfront cash grant in lieu of the 30% tax credit. The 30% solar tax credit for individual filers (i.e. residential systems) remains unchanged. The Treasury Department will administer the solar grant program and is required to pay out each solar grant within 60 days of the receipt of each application [Section 1603]. The solar grant is not subject to federal taxes [Section 1104]. There’s no word yet on whether the solar grant will be assignable. The same eligibility of the investment solar tax credit applies; in particular, this means that governmental and non-tax paying entities aren’t eligible. Almost all solar electric PV applications should be eligible, with the lone exception being swimming pool heating.
For 2009 projects, corporate tax filers can claim 50% bonus depreciation expense [Section 1201(a)]. The remaining 50% of the depreciation basis is expensed according to the 5-year MACRS schedule. The depreciation basis is still 85% of the total system cost (the total system cost less one half of the 30% federal grant) [Section 1104].
The cap on solar hot water heating equipment has been removed, making it eligible for the full 30% solar tax credit (but not the grant) [Section 1122].
Projects that benefit from subsidized financing will not have their federal grant reduced [Section 1103]. This will put tax-backed municipal loan programs on safer ground.
A 30% tax credit for factory equipment used in the manufacture of renewable energy equipment (including solar). The total budget for this tax credit is $2.3 billion [Section 1302].

30% Solar Tax Credit for Residential Solar Electric Systems

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below under solar electric property.

HOMEOWNERS: The Time to Go Solar is Now!

Contact SunWize Now and find out if you qualify for the solar tax credit!

*Required fields in bold.

Information About the American Recovery and Reinvestment Act of 2009

Legislative Links and Documentation

American Recovery and Reinvestment Conference Report.
The Energy Improvement and Extension Act of 2008 extended the solar tax credit once again until December 31, 2016, and a new tax credit for small wind-energy systems. In February 2009, The American Recovery and Reinvestment Act of 2009 removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.

IRS Department of the Treasury Reports:

Energy Provisions of the American Recovery and Reinvestment Act of 2009
Energy-Saving Steps This Year May Result in Tax Savings Next Year

More detailed information about financial incentives for solar is available from DSIREUSA.org:

FEDERAL Incentives/Policies for Renewables & Efficiency
Financial Incentives for Renewable Energy by State
Rules, Regulations and policies for Renewable Energy by State

Solar electric property

There is no maximum credit for systems placed in service after 2008.
The maximum credit is $2,000 for systems placed in service before January 1, 2009.
Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.
The home served by the system does not have to be the taxpayer’s principal residence.
The American Recovery and Reinvestment Act of 2009 does not allow taxpayers eligible for the residential renewable energy tax credit to receive a U.S. Treasury Department grant instead of taking this credit.