Incentives: Commercial Properties
TEP Small Commercial Solar Electric Systems (Photovoltaic)
TEP is offering incentive payments for small commercial photovoltaic (PV) systems to encourage the installation of solar power. To qualify in this category, systems can be up to 20 kilowatts AC (kWac). Up-Front Incentive (UFI) or Performance-Based Incentives (PBI) are available for both grid-tied and off-grid systems up to 20 kWac.
Learn more: www.tep.com/Green/Business/Solar/smcommelectric.asp
TEP Solar Hot Water/Space Heating
Tucson Electric Power (TEP) is offering incentive payments for commercial solar hot water and space heating systems to encourage the installation of solar power. Solar hot water and/or space heating systems are best suited in areas that receive a relatively high amount of annual sunshine.
Learn more: www.tep.com/Green/Business/Solar/spaceheating.asp
Federal Tax Credit
The federal solar tax credit is 30% of the system cost off your annual taxes. There is no cap for businesses, although the entire credit cannot be taken in the first year under certain circumstances. The credit expires for systems installed after December 31, 2016.
Learn more: www.dsireusa.org
State Tax Credit
The Arizona state tax credit is 10% of the system cost and is capped at $25,000 per location, $50,000 per business.
Learn more: www.azcommerce.com
State Property Tax Increase Exemption
Arizona state law dictates that your property taxes will not increase as a result of installing a photovoltaic system.
Learn more: www.dsireusa.org
City of Tucson
There is a permit fee waiver from City of Tucson up to $1,000. This applies when solar is included in the plans for a new building or addition.
Depreciation
Photovoltaic systems can be depreciated in one to five years. The tax basis for depreciation excludes TEP rebates and 50% of state and federal tax credits.