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NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
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Modified Accelerated Cost Recovery System (MACRS) lets businesses depreciate commercial solar over 5 years. Under the OBBBA, 100% first-year bonus depreciation was permanently restored for equipment placed in service after January 19, 2025.
For a $1M commercial solar system with 30% ITC ($300K), the depreciable basis is $850K (cost minus half the ITC). With 100% bonus depreciation restored by the OBBBA, the entire $850K is deducted in year one — worth approximately $297,500 in tax savings at a 35% rate, realized immediately rather than spread across six years.
5-year accelerated depreciation schedule (vs. 25-year useful life)
100% first-year bonus depreciation, permanently restored by the OBBBA for property placed in service after January 19, 2025
Depreciable basis reduced by 50% of the ITC claimed
Entire depreciable basis can be expensed in year one (taxpayers may elect the 40% rate instead)
At a 35% tax rate, MACRS can reduce net cost by an additional ~25-30% of system cost
Only available to taxable entities (tax-exempt entities use Direct Pay for the ITC)
Taxable businesses and entities
Commercial solar equipment placed in service during the tax year
System must be new (not used equipment)
Taxpayer must have sufficient tax liability to utilize deductions
Use IRS Form 4562 (Depreciation and Amortization)
100% bonus is the default — taxpayers may elect the 40% rate or elect out
Keep records of equipment cost basis and ITC adjustment
OBBBA restores 100% first-year bonus depreciation under IRC §168(k)
100% bonus depreciation — full basis expensed in year one (current year)
100% bonus depreciation is permanent — no scheduled phase-down
30% (6% without prevailing wage)
The Section 48E Investment Tax Credit provides a 30% credit on commercial solar installations that meet prevailing wage and apprenticeship requirements. This is the cornerstone federal incentive for commercial solar.
+10% bonus
An additional 10% ITC bonus for commercial solar projects that use US-manufactured components meeting specific domestic content thresholds.
+10% bonus
An additional 10% ITC bonus for commercial solar projects located in designated energy communities, including brownfields, coal closure areas, and fossil fuel employment areas.
For a $1M commercial solar system with 30% ITC ($300K), the depreciable basis is $850K (cost minus half the ITC). With 100% bonus depreciation restored by the OBBBA, the entire $850K is deducted in year one — worth approximately $297,500 in tax savings at a 35% rate, realized immediately rather than spread across six years.
Site-specific pricing with exact incentive calculations. No obligation.