Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
Review the preliminary layout with a commercial solar specialist. We’ll confirm roof condition, structural requirements, utility service, and the next feasibility steps.
Analyze a commercial roof5-year accelerated depreciation + 100% first-year bonus + Section 48 ITC stacking. OBBBA permanently restored 100% bonus depreciation — it no longer phases down to 0%. No state income tax means simpler filing for NH businesses.
MACRS Schedule
5 Years
vs. 25+ year panel life
Bonus Depreciation
100%
First-year deduction
Permanence
OBBBA
No phasedown after 2026
ITC Stacking
30-70%
Section 48/48E credit
Adjust the inputs to model your facility.
Federal ITC (30%)
$82,500
Depreciable basis
$233,750
Cost − 50% of ITC
Year-1 bonus deduction (100%)
$233,750
Full basis, expensed year one
Year-1 depreciation tax savings
$49,088
at 21% tax rate
Combined first-year benefit
$131,588
ITC + depreciation savings
Effective net cost after year 1
$143,413
Estimates only — confirm with a tax professional. Assumes 100% first-year bonus depreciation (OBBBA, IRC §168(k), for property placed in service after Jan 19, 2025) and that the ITC reduces the depreciable basis by half the credit. State conformity to federal bonus depreciation varies (Massachusetts, for example, decouples). Tax-exempt entities use Direct Pay for the ITC and cannot claim MACRS.
The Modified Accelerated Cost Recovery System (MACRS) is the federal depreciation method that lets a business recover a capital asset's cost through annual income-tax deductions. Commercial solar is 5-year property: the IRS lets you write the system off over five tax years even though the panels run 25-30+ years, and the permanent 100% first-year bonus (below) can pull the entire basis into Year 1. It is a deduction, not a dollar-for-dollar credit. The federal mechanics are identical nationwide — see our national MACRS depreciation guide for the full treatment.
What makes the depreciation pay off in New Hampshire is the combination of high commercial rates and the simplest tax structure in the region. NH commercial electricity averages roughly $0.198/kWh statewide across Eversource NH, Unitil, Liberty, and the NH Electric Cooperative. Installed commercial pricing runs about $2.00-$2.45/W small (25-100 kW), $1.55-$1.85/W mid-size, and $1.15-$1.45/W large-scale. The payback differentiator, though, is what NH does not tax — covered in the advantage box below.
Without MACRS, a business would depreciate solar panels over their useful life (25-39 years using straight-line depreciation), generating small annual deductions. MACRS compresses the entire deduction into 5 years, with most of the value concentrated in Years 1-3. This creates significantly larger deductions when they matter most — during the early years of system ownership when you are recovering your investment.
New Hampshire's tax structure is the real state-specific story here, and it cuts two ways that Massachusetts and Connecticut cannot match:
The Business Profits Tax (7.5% on net income over $75,000) and the Business Enterprise Tax (0.5%) still apply, and NH generally conforms to federal depreciation for BPT — so MACRS reduces BPT liability too. The net effect is the cleanest depreciation modeling of NuWatt's northern-New-England states.
In addition to the standard 5-year MACRS schedule, commercial solar systems qualify for 100% first-year bonus depreciation, permanently restored by OBBBA (IRC §168(k)) for property placed in service after January 19, 2025. This lets businesses deduct the entire adjusted depreciable basis in Year 1.
2022
100%
Expired
2023
80%
Expired
2024
60%
Expired
Jan 19, 2025
40%
Expired
2025+ (OBBBA)
100%
Current
2026 & after
100%
Current
The Tax Cuts and Jobs Act (TCJA) had established a phasedown from 100% bonus depreciation in 2022 toward 0% by 2027. OBBBA reversed that: it permanently restored 100% first-year bonus depreciation (IRC §168(k), IRS Notice 2026-11) for property placed in service after January 19, 2025. A system placed in service in 2026, 2027, or later all qualify for the full 100% bonus — the timing benefit no longer disappears.
The MACRS 5-year property class uses the 200% declining balance method switching to straight-line in the later years. With the 100% bonus, Year 1 captures the entire depreciable basis — the full deduction is taken up front.
| Year | Standard MACRS | With 100% Bonus | On $233K Basis* |
|---|---|---|---|
| Year 1 | 20.00% | 100.00% | $233,750 |
| Year 2 | 32.00% | 0.00% | $0 |
| Year 3 | 19.20% | 0.00% | $0 |
| Year 4 | 11.52% | 0.00% | $0 |
| Year 5 | 11.52% | 0.00% | $0 |
| Year 6 | 5.76% | 0.00% | $0 |
| Total | 100% | 100% | $233,750 |
* Example: $275,000 system with 30% ITC. Depreciable basis = $275,000 - ($82,500 x 50%) = $233,750
The ITC-plus-MACRS interaction is federal and works the same in every state, so we keep this tight: an owner claims both the Section 48/48E ITC and 5-year MACRS, and the only coupling is that the depreciable basis is reduced by half the credit claimed. New Hampshire's simplicity shows up in Step 4 — with no personal income tax and no bonus add-back, the federal Year-1 figure is essentially the whole income-tax story for most NH owners. The four steps below use a $275,000 NH system; for deeper detail see the Section 48/48E ITC guide.
The ITC is a dollar-for-dollar federal tax credit. The base rate is 30% for projects meeting prevailing wage + apprenticeship requirements. Bonus adders can push this to 40%, 50%, or up to 70%.
$275,000 system x 30% = $82,500 ITC (tax credit, not deduction)
Reduce the total system cost by 50% of the ITC claimed. This prevents "double-dipping" — you still depreciate most of the cost, but not the full ITC-covered portion.
$275,000 - ($82,500 x 50%) = $275,000 - $41,250 = $233,750 depreciable basis
Apply the 100% first-year bonus to the adjusted basis. The entire depreciable basis is expensed in Year 1, leaving nothing for the remaining MACRS schedule.
Bonus: $233,750 x 100% = $233,750. Remaining MACRS basis: $0. Year 1 total: $233,750
Combine the ITC (dollar-for-dollar credit) with the depreciation deduction (multiplied by your marginal tax rate). For a C-corp filing federally, the rate is 21%. NH has no state income tax add-back.
$82,500 ITC + ($233,750 x 21% federal) = $82,500 + $49,088 = $131,588 Year 1 federal tax benefit
Instead of MACRS, some NH businesses may elect Section 179 expensing to deduct up to $1,220,000 of the system cost in Year 1 (2026 limit). This is a full first-year write-off rather than spreading deductions over 5 years. Section 179 is particularly attractive for smaller systems where the entire cost falls under the limit. However, it cannot be combined with bonus depreciation on the same asset — you choose one or the other.
Section 179 Deep Dive| ITC Rate | Basis Reduction | Depreciable % of Cost | On $275K System |
|---|---|---|---|
| 30% | 15% | 85% | $233,750 |
| 40% | 20% | 80% | $220,000 |
| 50% | 25% | 75% | $206,250 |
| 60% | 30% | 70% | $192,500 |
| 70% | 35% | 65% | $178,750 |
Formula: Depreciable Basis = System Cost - (ITC Amount x 50%). Higher ITC = lower depreciable basis, but the ITC credit itself more than compensates.
New Hampshire has a unique tax structure that makes MACRS solar depreciation simpler than in most neighboring states. Understanding these NH-specific rules is critical for accurate financial modeling.
Unlike Massachusetts and other New England states, NH generally conforms to federal depreciation rules for BPT purposes. This means:
Consult your CPA to confirm current NH BPT conformity rules for your specific entity type.
New Hampshire has no state sales tax — period. Solar equipment, inverters, racking, batteries, and installation labor are all purchased tax-free.
On a $275,000 system: No sales tax to worry about (vs. $17,188 in MA at 6.25%)
This is a permanent NH advantage, not a special exemption
Under RSA 72:62, municipalities may vote to exempt solar energy systems from property tax assessments. This is a local-option statute — each town must adopt it.
~66% of NH towns have adopted this exemption
Check with your local assessor. Does NOT reduce MACRS depreciable basis
NH net metering credits at approximately 69% of retail rate (100% supply + 100% transmission + 25% distribution). This is not 1:1 — commercial systems should model at the actual credit rate for accurate ROI. New Hampshire also allows group net metering: a host array can allocate its excess credits across multiple metered accounts within the same utility territory (for example, a business with several buildings, or a municipality sharing one array across facilities). That flexibility — distinctive to NH's framework — lets an organization size a single system to cover load it could not net-meter on one meter alone.
Eversource
~$0.292/kWh retail, ~$0.20/kWh credit
Liberty
~$0.24/kWh retail, ~$0.20/kWh credit
Unitil
~$0.26/kWh retail, ~$0.22/kWh credit
NEM 2.0 locked through 2041. Credits at ~69% of retail still provide strong ongoing revenue alongside MACRS + ITC benefits.
The Section 48/48E commercial ITC starts at a 30% base rate and can stack up to 70% with bonus adders. Each adder has specific eligibility requirements. Projects that began construction on or before July 4, 2026 locked in the full timing pathway; projects starting now can still qualify but generally must be placed in service by December 31, 2027.
Base ITC: 30%
Prevailing wage + apprenticeship (projects > 1 MW)
Domestic Content (FEOC): +10%
US-manufactured steel, iron, and components; FEOC sourcing rules apply
Energy Community: +10%
Brownfield, closed coal mine/plant, or fossil fuel employment area (check ZIP)
Low-Income: +10-20%
Located in low-income community or serving low-income beneficiaries
Maximum possible ITC: 30% + 10% + 10% + 20% = 70%. On a $275,000 system, that is $192,500 in tax credits.
The residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners who buy solar with cash or a loan receive $0 from the federal government. The Section 48/48E commercial ITC is a separate program that remains available for commercial projects (including third-party-owned residential systems under PPA/lease structures). Beginning construction on or before July 4, 2026 locked in the full timing pathway; later starts still qualify but generally must be placed in service by December 31, 2027. The third-party system owner — not the installer — claims the ITC.
MACRS only delivers value if the owner has federal taxable income to offset. New Hampshire simplifies the rest of the analysis: with no personal income tax and no MA/CT-style corporate income tax, the federal 21% rate (and the BPT at the entity level) is essentially the whole picture — there is no second state-personal-income layer to model for pass-throughs. How each structure fares:
Maximum benefit. C-corps deduct MACRS directly against corporate income at the 21% federal rate. NH has no state income tax on business profits, so the effective rate is the full 21% federal — but with no state conformity issues.
MACRS deductions pass through to shareholders on Schedule K-1. Each shareholder deducts their pro-rata share against personal income on their federal return. NH has no personal income tax, so the benefit is entirely federal.
Similar to S-corps. Depreciation allocations flow through to members per the operating agreement. Tax equity partnerships can optimize allocation. Members file federally only for income tax purposes.
MACRS deductions flow to Schedule C on the federal return. Effective if the owner has significant business income. Limited by passive activity rules if solar is a separate activity. NH Business Profits Tax (7.5%) applies to gross income over $75,000.
Cannot use MACRS directly (no taxable income). Instead, use PPA/lease structures where the for-profit system owner claims MACRS + ITC and passes savings through lower rates.
Let us walk through a real-world example of a 100 kW commercial solar system on a business rooftop in Manchester, New Hampshire. This shows how MACRS, ITC, and NH-specific benefits stack together.
System Size
100 kW
Cost per Watt
$2.75/W
Gross Cost
$275,000
Entity Type
C-Corp
Section 48 ITC (30%)
$275,000 x 30% = dollar-for-dollar tax credit
$82,500
Depreciable Basis
$275,000 - ($82,500 x 50%) = adjusted basis
$233,750
Year 1 Bonus Depreciation (100%)
$233,750 x 100% = bonus deduction
$233,750
Regular Year 1 MACRS
($233,750 - $233,750) x 20% = $0 (basis fully expensed)
$0
Total Year 1 Depreciation Deduction
$233,750 + $0
$233,750
Year 1 Depreciation Tax Savings
$233,750 x 21% (federal only — no NH income tax)
$49,088
Total Year 1 Tax Benefit
$82,500 ITC + $49,088 depreciation savings
$131,588
No Sales Tax Savings
$0 sales tax
NH has no sales tax — permanent advantage
Property Tax (RSA 72:62)
Check Town
~66% of NH towns adopted exemption. Manchester: Yes
Annual Electricity Savings
~$37,800/yr
140,000 kWh x ~$0.27/kWh avg commercial rate (Eversource)
Net Metering Credits
~69% retail
NEM 2.0: 100% supply + 100% transmission + 25% distribution
Annual electricity savings (~$37,800/yr at NEM 2.0 credit rates) further reduce effective cost. With 100% bonus depreciation, the full basis is expensed in Year 1, so there are no residual MACRS deductions in later years. With BPT savings, typical payback: 4-6 years for NH businesses.
Common questions from business owners and tax advisors about MACRS solar depreciation in New Hampshire.
MACRS (Modified Accelerated Cost Recovery System) allows New Hampshire businesses to depreciate commercial solar systems over 5 years for federal tax purposes, even though solar panels last 25+ years. This front-loads tax deductions, creating significant cash flow benefits in the early years of ownership. Under OBBBA, 100% first-year bonus depreciation is permanent (IRC §168(k)) for property placed in service after January 19, 2025, so the entire depreciable basis can be deducted in Year 1. The depreciable basis is reduced by 50% of any ITC claimed.
Businesses can claim 100% first-year bonus depreciation on the adjusted depreciable basis of a solar system, made permanent under OBBBA (IRC §168(k)) for property placed in service after January 19, 2025. For example, on a $275,000 system with 30% ITC ($82,500), the depreciable basis is $233,750. The full $233,750 is deducted in Year 1, leaving $0 to depreciate over the remaining MACRS schedule. Because the 100% bonus is permanent rather than a phasedown, this benefit does not expire in 2027.
Yes. Businesses that own their commercial solar system can claim both the Section 48/48E ITC (30% base, up to 70% with adders) AND 5-year MACRS depreciation. The only interaction is that the depreciable basis must be reduced by 50% of the ITC claimed. For a 30% ITC, the depreciable basis becomes 85% of the system cost. Both benefits require system ownership — PPA and lease structures transfer these benefits to the third-party owner.
New Hampshire has no broad-based state income tax on business profits in the traditional sense. However, NH does levy the Business Profits Tax (BPT) at 7.5% on net business income over $75,000 and the Business Enterprise Tax (BET) at 0.5% on the enterprise value tax base. For MACRS purposes, since NH largely conforms to federal depreciation rules for BPT calculations, MACRS deductions reduce your BPT liability as well. This is simpler than states like Massachusetts that decouple from federal bonus depreciation.
When combining MACRS with the Section 48 ITC, the depreciable basis is reduced by 50% of the ITC claimed. The formula is: Depreciable Basis = Total System Cost - (ITC Amount x 50%). For example, a $275,000 system with a 30% ITC ($82,500) has a depreciable basis of $275,000 - $41,250 = $233,750. With a 50% ITC ($137,500), the depreciable basis would be $275,000 - $68,750 = $206,250.
C-corporations with high taxable income benefit most, since they can directly deduct MACRS against corporate income at the 21% federal rate. S-corporations and multi-member LLCs also benefit, as depreciation deductions pass through to owners/shareholders via K-1s. Nonprofits and public entities cannot use MACRS directly but benefit indirectly through PPA/lease structures where the for-profit system owner claims MACRS and passes savings through lower rates.
No. The earlier TCJA phasedown (100% in 2022 stepping down toward 0% by 2027) was reversed by OBBBA, which permanently restored 100% first-year bonus depreciation under IRC §168(k) for property acquired and placed in service after January 19, 2025 (IRS Notice 2026-11). Projects placed in service in 2027 and beyond still qualify for the full 100% bonus — it does not drop to 0%. Taxpayers may elect the 40% rate instead if it is more advantageous.
New Hampshire offers a property tax exemption for solar under RSA 72:62, but it is a local-option statute — meaning each municipality must vote to adopt it. Approximately 66% of NH towns have adopted this exemption. There is no state solar rebate (SB 303 repealed it in 2024). NH has no sales tax, so solar equipment purchases are never subject to sales tax. Net metering credits at approximately 69% of retail rate provide ongoing revenue. These exemptions do not reduce the MACRS depreciable basis.
Full commercial solar guide: ITC stacking, net metering, financing, and ROI for NH businesses.
Complete New Hampshire solar overview: costs, incentives, utility territories, and installation timeline.
Current pricing by utility territory. Eversource, Liberty, Unitil, and NHEC rates and payback periods.
National MACRS guide: 5-year schedule, 100% bonus depreciation, and ITC interaction rules.
Full first-year expensing for commercial solar: $1,220,000 limit, eligibility, and MACRS comparison.
National commercial solar pricing by system size tier. Small business, mid-size, and large-scale benchmarks.
Get a personalized MACRS + ITC tax savings analysis for your New Hampshire business. Our team will model the exact Year 1 benefit based on your system size, entity type, and tax situation.
The §48E begin-construction window closed July 4, 2026; projects starting now generally must be placed in service by Dec 31, 2027 (100% MACRS bonus is permanent under OBBBA).