Common Tax Incentives
Investment Tax Credits (ITC)
The (ITC) is a federal tax credit for those who purchase solar energy systems for residential, commercial or utility-scale properties. These tax credits allow municipalities to deduct a percentage of their investment in microgrid infrastructure from their taxes, reducing their overall tax liability.
Accelerated Depreciation
Decree No. 1058 allows for the accelerated depreciation (for income tax purposes) of up to 20% of the investments in machinery, equipment, and civil construction for renewable energy generation. Even in the US, the Modified Accelerated Cost Recovery System allows companies to depreciate solar energy property rapidly compared to that of other properties. Under this program, solar property is considered 5-year property meaning they can be depreciated in 5 years.
Grants and Subsidies
Municipalities may have access to grants, subsidies, or financial assistance programs specifically designed to support the development and deployment of microgrids. For example, Smart Grid Grants are designed to increase the electric power system's flexibility, efficiency, and reliability.
By harnessing the power of Solar Powered Microgrids, Municipalities can focus on Producing more Energy than they utilize.