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

[Dana Brandt]

Thanks, David! That's exactly what I needed.

Dana


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


On Wed, Sep 30, 2009 at 12:34 PM, David Brearley <
david.brearley at solarprofessional.com> wrote:

>  Dana,
>
> Here is an excerpt from the latest SEIA tax manual that supports the
> information from Randy:
>
> “1.6.2 Basis Reduction—The owner of solar equipment on which an investment
> credit is claimed or on which a cash grant is paid by the Treasury can
> depreciate only 85 percent of the cost. The ‘basis’ for depreciation must be
> reduced by half the amount of the investment credit or cash grant.”
>
> Best regards,
>
> David Brearley, Senior Technical Editor
> *SolarPro* magazine
> NABCEP Certified PV Installer ™
>
>
> On 9/30/09 2:11 PM, "Dana Brandt" <dana at ecotechenergy.com> wrote:
>
> Thanks, Randy. Do you have a reference for the depreciable basis being
> reduced by half the tax credit? I've emailed the treasury dept. and will
> report back what I hear from them.
>
> Dana
>
>
> Dana Brandt
> Ecotech Energy Systems, LLC
> www.ecotechenergy.com <http://www.ecotechenergy.com>
> dana at ecotechenergy.com
> 360.510.0433
>
>
> On Tue, Sep 29, 2009 at 8:39 PM, Randy <randy at positiveenergysolar.com>
> wrote:
>
> 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<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 <http://www.ecotechenergy.com>
> dana at ecotechenergy.com
> 360.510.0433
>
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