![]() ![]() The stamp also served as NASA’s rallying cry to set the record straight for exploring Pluto. WASHINGTON - A 1991 Pluto: Not Yet Explored stamp traveled more than 3 billion miles on a spacecraft to the dwarf planet has earned the GUINNESS WORLD RECORDS achievement for the farthest distance traveled by a postage stamp. The “Pluto-Explored!” stamps issued May 31, 2016, by the U.S. You should consult with a licensed professional for advice concerning your specific situation.įorbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms.The 1991 stamp that served as the rallying cry for the New Horizons Mission to Pluto is “updated” by members of the New Horizons science team on July 14, 2015, the day the spacecraft reached Pluto. The information provided here is not investment, tax or financial advice. As the demand for clean, renewable energy continues to grow, solar equity investing might be a compelling opportunity for investors looking to diversify their portfolios and contribute to a more sustainable future. If you are looking for a sector experiencing phenomenal growth, the green energy industry might just be an option. A third way to qualify is to have sufficient passive income that can be used to offset the value of the solar tax credit and the depreciation tax value associated with the solar energy project. To qualify as a solar tax credit investor, an individual or business must qualify as a C Corporation with a significant federal tax bill that can be offset by the value of the solar tax credit.Īnother way to qualify is to be actively involved in a commercial real estate business, such as owning or managing properties. Some states offer additional tax incentives in the form of investment tax credits, energy production tax credits, property and sales tax exemptions, etc. But in tandem with the 2017 Tax Cuts and Jobs Act, eligible investors can reduce their taxable income by as much as 100% in the first year of purchase. In this way, investors can reduce their taxable income in the near future rather than over a longer term.Īs per the IRS, you are allowed to write off the cost of durable assets over their useful life. However, the MACRS allows investors to deduct the value over a span of just five years. The IRS directs the depreciation of an asset over its useful life, which is typically 25 years for a solar-powered system. Modified Accelerated Cost Recovery System (MACRS).As per the latest Inflation Reduction Act, you can claim 30% of your total installation costs (solar systems and panels). Solar Investment Tax Credit has been available since 2005 and is a type of credit that eligible investors can claim against their federal income taxes. Let’s explore such incentives in detail below: Governments at both the federal and state levels have tried to incentivize solar energy investors. Now that we understand the structure of solar deals, let’s look at their tax benefits. Once the parties agree to the deal structure, an LLC is registered, whose nature the solar tax equity investor can use to realize tax incentives. The investor receives operating cash flow but never owns the project’s assets. The developer also retains depreciation deductions to offset the rental income. This is among the more popular models wherein a tax equity investor leases a project from a solar developer, who continues to own and operate the project. After this point, the developer has the option to “flip” the ownership of the project and become the majority stakeholder. This is an association between tax equity investors and a project developer wherein the former sponsors the majority of the project for a predetermined period or until a fixed return target is achieved. While the developer controls and operates the project, the tax equity investor is compensated in the form of tax benefits, a share in the cash flow and profits. Let’s explore how different solar equity deals are structured.Īs the name suggests, in this structure, the solar project developer sells the entire project to the tax equity investor and then leases it back from the investor. Solar equity deals can come in different forms and types, depending on the specific needs and goals of the parties involved. In this way, solar developers looking for funding get a helping hand, while tax equity investors receive ownership and tax benefits, resulting in a win-win situation for both parties involved. In return, they are entitled to part ownership and 100% tax benefits, besides additional incentives and proceeds. Tax equity investors commonly fund 40% of the purchase price of the solar panels or of the overall project cost. ![]()
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