MACRS Change for 2012

Just a quick note to let you know that we made a change to the way that the MACRS (accelerated depreciation) is calculated for commercial PV systems. This change was made to keep in line with federal regulations for 2012.

As of January 2012, when you do a commercial proposal, the MACRS line will be calculated as follows: first, we’ll deduct 1/2 of the federal incentive from the total system cost, and then take 15% of the balance as the accelerated depreciation.  (Previously, it was 30%.)

For example, if the total system cost is $50,000, the federal incentive (30%) would be $15,000. Thus, the “eligible” amount for depreciation is $42,500 ($50,000 – $7,500). The MACRS Accelerated Depreciation would be 15% of that figure, or $6,375.

Another minor change: for commercial proposals, the federal incentive is now labeled “Federal Tax Grant/Credit.”

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