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Federal Incentives

Learn About Federal Incentives By States We Serve

Federal Investment Tax Credit (FITC)

FITC is a 30% tax credit on the total cost of your system and applies to both individuals and corporations. This is a dollar for dollar tax credit. You must have taxable income to take advantage of this credit. If you don’t have tax liability, meaning you won’t owe taxes at the end of the year, we can help you out with a lower rate. Schedule a time to speak with someone on our team regarding your personal situation and how we can help.

Inflation Reduction Act (IRA)

The IRA adds another 10% tax credit to businesses that go green with American-made products. All of our products are manufactured in the US, so any business can now realize an additional 10% tax credit by working with Direct Power.

USDA Rural Energy for America Program (REAP)

The USDA offers REAP for businesses deemed to be in a “rural” area. You may be surprised what is classified as rural according to the USDA. Speak with a member of our team to see if you qualify. If you do, 50% of the cost of going solar is available to you in the form of a grant. That’s right, half of your system is FREE!

Modified Accelerated Cost Recovery System (MACRS)

Donald Trump added the MACRS program in 2016. This allows up to 80% of the cost of your system to be depreciated in year 1. Assuming a 20% federal tax rate, that’s the equivalent of a 16% tax credit. This is only available to businesses.

Total Federal Incentives

This may sound crazy, but it is in fact possible to invest in solar and within 1 year to receive back more than you paid in. With the combination of all 4 of these incentives, a “rural” business with tax liability can receive back 106% of their system in tax savings and grants. That doesn’t even include your state, local or utility company incentives.

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