Calculate MACRS depreciation schedule for commercial solar PV systems using the 5-year accelerated depreciation method.
Input Parameters
Results
--
Adjusted Basis
$
--
Year 1 Deduction
$
--
Total Tax Savings
$
--
Effective Cost Reduction
%
Note: Commercial solar uses 5-year MACRS. The ITC reduces depreciable basis by half the credit amount. Consult a tax professional for project-specific advice.
Reference
ITC Amount = Basis x ITC%
Adjusted Basis = Basis - (ITC x 50%)
Bonus Depreciation = Adj Basis x Bonus%
MACRS 5-yr: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%
Tax Savings = Total Depreciation x Tax Rate + ITC