[RE-wrenches] does the federal grant affect depreciation?

Randy randy at positiveenergysolar.com
Tue Sep 29 20:39:49 PDT 2009


Dana,

Federal depreciation rules establish depreciation  or the depreciable basis
based on the system cost reduced by half of the tax credit. The federal
grant is "in lieu" of the tax credit therefore I am fairly certain that
treatment should be the same as taking the tax credit.  

 

However, I couldn't readily find a definitive answer and it was not covered
in the SEIA webinar.  If you cant get an affirmative response then email the
treasury department at 1603Questions at do.treas.gov.  

 

Randy

 

Randy Sadewic

Positive Energy

 

Office: 505 424-1112

Cell:    505 570-0137

From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of Dana Brandt
Sent: Tuesday, September 29, 2009 5:33 PM
To: RE-wrenches
Subject: [RE-wrenches] does the federal grant affect depreciation?

 

Wrenches,

I feel like this must have been discussed before, but I can't find it in the
archives. 

If a business takes the 30% federal grant, do they get to depreciate 100% of
the system cost, or just the remaining 70%?

Thanks,

Dana


Dana Brandt
Ecotech Energy Systems, LLC
www.ecotechenergy.com
dana at ecotechenergy.com
360.510.0433

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