Tax Benefits for Commercial Customers

We specialize in Commercial transactions. In doing that, we offer more services than a regular solar company. Tax optimization strategies is one of those additional services. Frankly, unless your CPA specializes in Solar Tax programs, they will not be as familiar with all the tax incentives, grants, and strategies related to purchasing solar in the most beneficial way. If our company is anything, it is useful. Use our expertise in the industry to your advantage.

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Tax Incentives for Businesses

1. Investment Tax Credit 48E (30%)

With the passing of the Big Beautiful Bill, the deadline for the tax credits changed. The bill was passed on 7/4/2025.

If you would like to claim the 30% credit the project must be completed by 7/4/2026.

The credit is then reduced to 18% from 7/4/26-7/4/27

It is reduced to 6% from 7/4/27-7/4/28

2. Domestic Content Credit (10%)

At Serv Solar, we are currently installing exclusively domestic content eligible products. This credit is set to continue through 2033. It requires at least 45% of all the materials to be directly sourced from the United States.

3. Federal Depreciation

The cost of the system can be depreciated from your taxes. The depreciation schedule is over 5 years. If the system is installed in 2025, you can claim 40% depreciation year 1. If it is installed in 2026 or later, you must claim it equally over 5 years.

For federal depreciation, you can claim the total system cost - 50% of the tax credit amount (EX. 80% of the total system cost. if you receive a 40% tax credit)

4. State Depreciation

For California taxes, the 100% of the cost of the solar installation can be depreciated over 5 years.

What if you can't claim all the tax incentives?

Tax Credits for Commercial Installs are Completely Transferable

We work with a group of investors that purchases tax credits directly from you. The typical rate of return on your tax incentive is between 75%-85%.

Benefit to the Investor: For the investor, if they were planning on paying $100,000 in federal income tax, they can pay you $80,000, and claim your $100,000 credit.

Benefit to You: If you were eligible for a $100,000 tax credit, but you are unable to claim it, then you can choose to receive an $80,000 check of tax free money in replacement to your credit.

Note: All this work is legal and completed directly through the IRS.