Dana, Here is an excerpt from the latest SEIA tax manual that supports the information from Randy:
³1.6.2 Basis ReductionThe owner of solar equipment on which an investment credit is claimed or on which a cash grant is paid by the Treasury can depreciate only 85 percent of the cost. The basis¹ for depreciation must be reduced by half the amount of the investment credit or cash grant.² Best regards, David Brearley, Senior Technical Editor SolarPro magazine NABCEP Certified PV Installer On 9/30/09 2:11 PM, "Dana Brandt" <d...@ecotechenergy.com> wrote: > Thanks, Randy. Do you have a reference for the depreciable basis being reduced > by half the tax credit? I've emailed the treasury dept. and will report back > what I hear from them. > > Dana > > > Dana Brandt > Ecotech Energy Systems, LLC > www.ecotechenergy.com <http://www.ecotechenergy.com> > d...@ecotechenergy.com > 360.510.0433 > > > On Tue, Sep 29, 2009 at 8:39 PM, Randy <ra...@positiveenergysolar.com> wrote: >> Dana, >> >> Federal depreciation rules establish depreciation or the depreciable basis >> based on the system cost reduced by half of the tax credit. The federal grant >> is ³in lieu² of the tax credit therefore I am fairly certain that treatment >> should be the same as taking the tax credit. >> >> >> >> However, I couldn¹t readily find a definitive answer and it was not covered >> in the SEIA webinar. If you cant get an affirmative response then email the >> treasury department at 1603questi...@do.treas.gov. >> >> >> >> Randy >> >> >> >> Randy Sadewic >> >> Positive Energy >> >> >> >> Office: 505 424-1112 >> >> Cell: 505 570-0137 >> >> From: re-wrenches-boun...@lists.re-wrenches.org >> [mailto:re-wrenches-boun...@lists.re-wrenches.org] On Behalf Of Dana Brandt >> Sent: Tuesday, September 29, 2009 5:33 PM >> To: RE-wrenches >> Subject: [RE-wrenches] does the federal grant affect depreciation? >> >> >> >> Wrenches, >> >> I feel like this must have been discussed before, but I can't find it in the >> archives. >> >> If a business takes the 30% federal grant, do they get to depreciate 100% of >> the system cost, or just the remaining 70%? >> >> Thanks, >> >> Dana >> >> >> Dana Brandt >> Ecotech Energy Systems, LLC >> www.ecotechenergy.com <http://www.ecotechenergy.com> >> d...@ecotechenergy.com >> 360.510.0433 >> >> _______________________________________________ >> >> >
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