MACRS Depreciation (Solar) Calculator
Accelerated depreciation schedule for solar assets.
Inputs
%
Results
Year 1 tax savings ($)
$332,350.00
Depreciable basis ($)$1,700,000.00
Year 1 depreciation ($)$1,156,000.00
Total depreciation ($)$1,700,000.00
Total tax savings ($)$488,750.00
NPV of tax savings ($)$436,633.00
ITC credit amount ($)$600,000.00
Effective net cost ($)$963,367.00
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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