From an article in this week’s Transport Topics (“Cliff” Compromise Allows 50% Write-off Of New Equipment”).
Why is this such a big deal?
Under this legislation, fleet owners will be able to continue to write off ½ of the cost of equipment purchases on their 2013 tax bill. Before the President and Congress agreed on this new deal, the 50% Bonus Depreciation was due to expire at the end of 2012.
What does this mean?
Now in addition to being able to qualify for the 30% Federal Energy Tax Credit, you are able to take the 50% Bonus Depreciation. As an example, if the “solar based system” cost $10,000, you would deduct the 30% Federal Energy Tax Credit and you would now be at $7,000. Now factor in the 50% Bonus Depreciation on the $7,000 (i.e. depreciation only applies to the net cost after you deduct the Federal Tax Credit) and you are at $3,500. This is a total tax savings of $6,500. We “strongly” suggest that you discuss this with your tax advisor since everyone’s situation is different.
These factors should provide a strong incentive to purchase “solar-based systems” now, before it is too late. eNow can evaluate your specific application and show you how our systems can reduce your operating cost. We can also have you talk to our financing experts on how you could apply for payment terms on solar-based systems.