IncentivesUp to date · Jan 15, 2026
MACRS (Modified Accelerated Cost Recovery System)
A federal tax depreciation schedule that allows businesses to recover solar investment costs over 5 years, significantly improving commercial solar ROI.
Why It Matters
MACRS plus bonus depreciation can recover 85%+ of a commercial system cost through tax benefits in the first year, making solar highly attractive for businesses.
Real-World Example
A business installs a $100,000 solar system. With the 30% ITC and 5-year MACRS depreciation on the remaining basis, total tax benefits can exceed $55,000.
Related Tools
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.
Depreciation
A tax deduction that allows business solar system owners to deduct the cost of the system over time. Under MACRS, commercial solar depreciates over 5 years with possible bonus depreciation in year one.