State Tax Incentives for Going Green SUMMARY: Put It All Together: Page 31
By Paul Naumoff, Co-National Director, Business Incentives and Credits Ernst & Young, June11, 2008
100KW Solar System = $30,000.00 Utility Cost PrYr X 30 year mortgage = 1 MILLIONS DOLLARS
Original 1 million dollar investment reduced to $60,000.00 and Paid off by the Utility Company in 2 years.
$8.95 per Watt initial cost mounted on an existing roof $895,000
Utility incentive of $4.50 per Watt $(450,000)
Federal Tax on Utility Rebate $157,500
State Tax credit $25,000 (Net of FIT) $(16,250)
Federal Tax credit of 30% $(268,500)
Exemption from property tax on equipment TBD
Tax benefit of depreciation of system (5 year MACRS) $(251,060)
Net after tax cost $66,690
Annual savings from system both usage and demand $30,488
Simple payback approximately = 2 years
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