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<TITLE>Re: [RE-wrenches] does the federal grant affect depreciation?</TITLE>
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<FONT FACE="Calibri, Verdana, Helvetica, Arial"><SPAN STYLE='font-size:11pt'>Dana,<BR>
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Here is an excerpt from the latest SEIA tax manual that supports the information from Randy: <BR>
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“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.”<BR>
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Best regards,<BR>
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David Brearley, Senior Technical Editor<BR>
<I>SolarPro</I> magazine <BR>
NABCEP Certified PV Installer ™<BR>
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On 9/30/09 2:11 PM, "Dana Brandt" <<a href="dana@ecotechenergy.com">dana@ecotechenergy.com</a>> wrote:<BR>
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</SPAN></FONT><BLOCKQUOTE><FONT FACE="Calibri, Verdana, Helvetica, Arial"><SPAN STYLE='font-size:11pt'>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. <BR>
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Dana<BR>
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Dana Brandt<BR>
Ecotech Energy Systems, LLC<BR>
www.ecotechenergy.com <<a href="http://www.ecotechenergy.com">http://www.ecotechenergy.com</a>> <BR>
<a href="dana@ecotechenergy.com">dana@ecotechenergy.com</a><BR>
360.510.0433<BR>
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On Tue, Sep 29, 2009 at 8:39 PM, Randy <<a href="randy@positiveenergysolar.com">randy@positiveenergysolar.com</a>> wrote:<BR>
</SPAN></FONT><BLOCKQUOTE><FONT FACE="Calibri, Verdana, Helvetica, Arial"><SPAN STYLE='font-size:11pt'>Dana,<BR>
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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. <BR>
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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 <a href="1603Questions@do.treas.gov">1603Questions@do.treas.gov</a>. <BR>
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Randy<BR>
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</SPAN><FONT SIZE="2"><SPAN STYLE='font-size:10pt'>Randy Sadewic<BR>
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</SPAN><FONT SIZE="2"><SPAN STYLE='font-size:10pt'><B>From:</B> <a href="re-wrenches-bounces@lists.re-wrenches.org">re-wrenches-bounces@lists.re-wrenches.org</a> [<a href="mailto:re-wrenches-bounces@lists.re-wrenches.org">mailto:re-wrenches-bounces@lists.re-wrenches.org</a>] <B>On Behalf Of </B>Dana Brandt<BR>
<B>Sent:</B> Tuesday, September 29, 2009 5:33 PM<BR>
<B>To:</B> RE-wrenches<BR>
<B>Subject:</B> [RE-wrenches] does the federal grant affect depreciation?<BR>
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Wrenches,<BR>
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I feel like this must have been discussed before, but I can't find it in the archives. <BR>
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If a business takes the 30% federal grant, do they get to depreciate 100% of the system cost, or just the remaining 70%?<BR>
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Thanks,<BR>
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Dana<BR>
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Dana Brandt<BR>
Ecotech Energy Systems, LLC<BR>
www.ecotechenergy.com <<a href="http://www.ecotechenergy.com">http://www.ecotechenergy.com</a>> <BR>
<a href="dana@ecotechenergy.com">dana@ecotechenergy.com</a><BR>
360.510.0433<BR>
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