RAPower3 Tax Form Examples

Provided By the SEIA (Solar Energy Industries Association)

The Energy Policy Act of 2005 (EPAct 05) created a new commercial and residential ITC for fuel cells and solar energy systems that applied from January 1, 2006 through December 31, 2007. This 30% tax credit was extended for one additional year in December 2006 by the Tax Relief and Health Care Act of 2006. In 2007, global investment in clean energy topped $100 billion, with solar energy as the leading clean energy technology for venture capital and private equity investment.

On October 3, 2008, the House of Representatives passed H.R. 1424, the Emergency Economic Stabilization Act of 2008 by a vote of 263-171. Soon after, President Bush signed the bill into law. The U.S. Senate passed its own version of the bill on Oct. 1, 2008. In the bill are a number of provisions supporting energy efficiency and renewable energy, including all of the solar incentives advocated by SEIA.

This package includes an 8-year extension of the commercial and residential solar investment tax credit, completely eliminates the monetary cap for residential solar electric installations, and allows utilities and alternative minimum tax (AMT) filers to take the credit. In 2009, under the American Recovery and Reinvestment Act, the $2,000 credit cap on solar hot water installations was eliminated.

Along with the Section 48 investment tax credit, solar property also qualifies for accelerated depreciation through Dec. 31, 2016.

Accelerated Depreciation

Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which allows the owner of qualifying equipment including qualifying solar equipment to deduct 85 percent of their tax basis using either the commercial ITC or the Treasury Grant Program. This form of depreciation can be claimed over a five year period.

Recent Changes: 100 Percent Expensing
The 100 percent expensing is a way for companies with qualified, new projects to depreciate 100 percent of the capital investments placed in service after September 8, 2010 through December 31, 2011. For companies that place equipment in service after 2011, the bill contains a 50 percent bonus depreciation provision that companies can elect for qualifying property through December 31, 2012.

OUR NAME: Ra is the ancient Egyptian Sun God and the #3 refers to the three ways our distributors can earn income from the power of the sun. Greg Shepard: Chief Director of Operations	SOLAR ENERGY TAX BENEFIT HISTORY Provided By the SEIA (Solar Energy Industries Association) The Energy Policy Act of 2005 (EPAct 05) created a new commercial and residential ITC for fuel cells and solar energy systems that applied from January 1, 2006 through December 31, 2007. This 30% tax credit was extended for one additional year in December 2006 by the Tax Relief and Health Care Act of 2006. In 2007, global investment in clean energy topped $100 billion, with solar energy as the leading clean energy technology for venture capital and private equity investment. On October 3, 2008, the House of Representatives passed H.R. 1424, the Emergency Economic Stabilization Act of 2008 by a vote of 263-171. Soon after, President Bush signed the bill into law. The U.S. Senate passed its own version of the bill on Oct. 1, 2008. In the bill are a number of provisions supporting energy efficiency and renewable energy, including all of the solar incentives advocated by SEIA. This package includes an 8-year extension of the commercial and residential solar investment tax credit, completely eliminates the monetary cap for residential solar electric installations, and allows utilities and alternative minimum tax (AMT) filers to take the credit. In 2009, under the American Recovery and Reinvestment Act, the $2,000 credit cap on solar hot water installations was eliminated. Along with the Section 48 investment tax credit, solar property also qualifies for accelerated depreciation through Dec. 31, 2016. Accelerated Depreciation Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which allows the owner of qualifying equipment including qualifying solar equipment to deduct 85 percent of their tax basis using either the commercial ITC or the Treasury Grant Program. This form of depreciation can be claimed over a five year period. Recent Changes: 100 Percent Expensing The 100 percent expensing is a way for companies with qualified, new projects to depreciate 100 percent of the capital investments placed in service after September 8, 2010 through December 31, 2011. For companies that place equipment in service after 2011, the bill contains a 50 percent bonus depreciation provision that companies can elect for qualifying property through December 31, 2012.
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