IncentivesUp to date · Jan 15, 2026
MACRS Depreciation (Solar)
The Modified Accelerated Cost Recovery System allows commercial and rental property solar owners to depreciate the system cost over 5 years, with bonus depreciation enabling 80-100% first-year write-off.
Why It Matters
MACRS plus the ITC can recover 56-74% of commercial solar system cost through tax benefits in year one. This is why commercial solar has different economics than residential.
Related Terms
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
Cost Segregation
An IRS-approved accounting method to accelerate depreciation of solar systems on commercial or rental properties, allowing owners to deduct a larger portion of the cost in early years.