There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase solar energy systems:
1) The investment tax credit (ITC) reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
2) The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.
Generally, project owners cannot claim both the ITC and the PTC for the same property, although they could claim different credits for co-located systems, like solar and storage, depending on what further guidance is issued by the IRS.
Eligible projects include solar systems that are:
Located in the United States or U.S. territories;
Use new and limited previously used equipment; and are
Not leased to a tax-exempt entity (e.g., a school), though tax exempt entities are eligible to receive the ITC themselves in the form of a direct payment.
To claim the ITC, a taxpayer must complete and attach IRS Form 3468 to their tax return. Instructions for completing the form are available at http://www.irs.gov/pub/irs-pdf/i3468.pdf (“Instructions for Form 3468,” IRS).
To claim the PTC, a taxpayer must complete and attach IRS Form 8962 to their tax return. Instructions for completing the form are available at http://www.irs.gov/pub/irs-pdf/i8962.pdf (“Instructions for Form 8962,” IRS).
Bonus credits are available if a project meets certain labor requirements
Focus on Energy is Wisconsin’s statewide energy efficiency and renewable resource program funded by the state’s investor-owned energy utilities and participating municipal and electric cooperative utilities.
The Wisconsin Economic Development Corporation (WEDC) is offering grants to support the development of new and existing cooperatives in Wisconsin, with a goal of fostering the success of current and future cooperatives by supporting planning and exploratory research in advance of making a large investment.