MACRS Depreciation (Solar) Calculator

Accelerated depreciation schedule for solar assets.

Total project cost ($)

ITC rate (decimal)

Bonus depreciation (%)

Federal marginal tax rate

State tax rate

Tab to move between fields

Year 1 tax savings ($)

$332,350

Depreciable basis ($)$1,700,000

Year 1 depreciation ($)$1,156,000

Total depreciation ($)$1,700,000

Total tax savings ($)$488,750

NPV of tax savings ($)$436,633

ITC credit amount ($)$600,000

Effective net cost ($)$963,367

Cost reduction (%)51.8%

How to Use This Calculator

Enter the total installed project cost and the applicable ITC rate.
Set the bonus depreciation percentage for the applicable tax year.
Enter federal and state marginal income tax rates.
Review Year 1 tax savings and the NPV of depreciation tax savings.
Use the effective net cost and cost reduction percentage for project financial modeling.

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