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 1603questi...@do.treas.gov. Randy Randy Sadewic Positive Energy Office: 505 424-1112 Cell: 505 570-0137 From: re-wrenches-boun...@lists.re-wrenches.org [mailto:re-wrenches-boun...@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 d...@ecotechenergy.com 360.510.0433
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