Solar-Tec Systems Installed Solar Electric Power System in Murrieta, CA

The 2008 California Solar Initiative Funding

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Solar-Tec Systems offers top quality turn-key Solartech Power, SolarWorld and Sharp high-efficiency solar electric panel installations. We have been installing commercial grid tie solar electric panels since 1998. Solar-Tec Systems is a Southern California Solar Energy Contractor that offers residential and commercial grid tie Solar Electric Power PV System Installations in Orange County, San Diego, Los Angeles, San Bernardino and Riverside Counties, California. Solar-Tec Systems service area for commercial solar electric panel system installations include the local Southern California communities of Dana Point, San Juan Capistrano, Monarch Bay, San Clemente, Monarch Beach, Laguna Beach, Mission Viejo, Capistrano Beach, Laguna Niguel, South Laguna, Murrieta, Lake Forest, Laguna Hills, Emerald Bay, Rancho Santa Margarita, Vista, Temecula, Laguna Woods, Newport Coast, Aliso Viejo, Anaheim, Seal Beach, Los Alamitos, Costa Mesa, Cypress, Cerritos, Brea, Oceanside, Fallbrook, Bonsall, Huntington Beach, Newport Beach, Orange, Ladera Ranch, Carlsbad, Tustin, Foothill Ranch, Three Arch Bay, Fountain Valley, Garden Grove, Irvine, El Toro, Westminster, Yorba Linda, Aliso Viejo, Silverado, Trabuco Canyon, San Juan Hot Springs, Anaheim Hills, Balboa, Balboa Island, Corona Del Mar, Coto de Caza  and Portola Hills, Seal Beach, Fullerton, Placentia, Corona, Temecula, Perris, La Mirada, Norwalk, Lakewood, Whittier, Riverside, Moreno Valley, San Bernardino, Rancho Mirage, Palm Springs, Cathedral City, Palm Desert, Indian Wells, San Juan Hot Springs, Canoga Park, Encino, Ventura, Tarzana, Woodland Hills, LA, Granada Hills, Playa del Rey, Los Angeles, Chatsworth, Beverly Hills, Universal City, Hollywood, Culver City, Reseda, Northridge, Sherman Oaks, Universal City, North Hollywood, Sun Valley, Panorama City, Pacoima, Brentwood, Beverly Glenn, Westwood, Venice, Mar Vista, Playa del Rey, Westchester, West LA, Wilmington and San Pedro Solar-Tec Systems installs high-efficiency solar  panels on commercial business solar electric systems on the Southern California Edison, San Diego Gas & Electric, Pacific Gas & Electric, Los Angeles Department of Water and Power (LADWP), Anaheim Public Utility and Imperial Irrigation District utility grids.

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       Last modified: February 28, 2009     

COMMERCIAL SOLAR ELECTRIC SYSTEM  FEDERAL TAX CREDIT The 10% investment tax credit, otherwise known as the business energy tax credit, has been permanently extended as part of the passage of the Energy Policy Act of 1992. This means that the solar energy industry will no longer be burdened with the prospect of a continually expiring and reinstated credit. (U.S. Code Citation: 26 USC Sec. 48) Who is eligible for the credit? How is solar energy property defined? What does NOT qualify as solar energy property? Are there cases when the full 10% credit cannot be taken? Are there limitations on the amount of credit I can take? Do I have to use the credit in the year the purchase or investment is made? Are there special tax forms needed to take the credit?   Who is eligible for the credit? Anyone who invests in or purchases qualified solar energy property can take the credit -- up to 10% of the investment or purchase and installation amount -- when income tax forms are filed. Only commercial entities can take the credit. This credit should not be confused with the residential tax credit which permanently expired in 1985. The credit cannot be claimed for property used mainly outside the United States, used by governmental units and foreign persons and entities, or used by a tax-exempt organization (unless the property is used mainly in an unrelated trade or business).   How is solar energy property defined? Solar energy property is defined as equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Solar energy property that qualifies for the credit INCLUDES: Equipment that uses solar energy to generate electricity, including storage devices, power conditioning equipment, transfer equipment, and related parts, and equipment up to (but not including) the stage that transmits or uses electricity, and "Dual use equipment" (equipment that uses both solar and non-solar energy, such as pipes and hot water tanks) only if its use of energy from non-solar sources does not exceed 25% of its total energy input in an annual measuring period, and only to the extent of its basis or cost allocable to its use of solar energy. In addition, solar energy property MUST BE -- Completely installed and operational in the year in which the credit is first taken, Constructed, reconstructed, or erected by (or at the request of) the taxpayer, Originally used by the taxpayer, if acquired by the taxpayer, In conformance with any performance or quality standards prescribed by regulation, and Subject to depreciation or amortization.   What does NOT qualify as solar energy property? Solar energy property DOES NOT INCLUDE -- Public utility property, The material and components of "passive solar systems" (i.e., systems based on the use of conductive, convective, or radiant heat transfer) even if combined with "active solar systems" (i.e., systems based on the use of mechanically forced energy transfer), Equipment used for most swimming pools (consult your tax advisor), and Equipment that uses solar energy to generate steam at high temperatures for use in industrial or commercial processes.   Are there cases when the full 10% credit cannot be taken? Yes, if the solar energy property is financed in whole or in part by subsidized energy financing or by tax-exempt private activity bonds. The credit may taken only on the portion of the investment or purchase which is not subsidized. For example, if for a $100,000 investment (otherwise known as the cost or basis) $20,000 is allocable to subsidized financing or tax-exempt private activity bonds, the credit would amount to 10% of $80,000. In addition, the cost or basis of property for investment credit purposes may be limited if you borrowed against the property and are protected against loss, or if you borrowed money from a person who is related, or who has other than a creditor interest in the business activity. In these cases, the cost or basis must be reduced by the amount of this "nonqualified nonrecourse financing" as of the close of the tax year in which it is placed in service.   Are there limitations on the amount of credit I can take? In any one year you may not take any tax credit that exceeds the total tax owed. The allowable tax credit for any one year is also limited to $25,000, plus 25% of the total tax remaining after the credit is taken. For example, if you are allowed the full 10% credit for an investment of $500,000, which is $50,000, and you owe $100,000 in taxes, you may take $25,000 plus 25% of the remaining $75,000 ($18,750), which equals $43,750. Credit not allowable in one year may be taken in other tax years (see below).   Do I have to use the credit in the year the purchase or investment is made? No. If you cannot use part or all of the credit because of tax liability limitations, you may carry any excess back to each of the three preceding years, beginning with the earliest. If you have an unused credit after carry back, it may be carried forward to each of the 15 years after the year of the credit. Are there special tax forms needed to take the credit? Yes. You will need form 3486 (Investment Credit), and you may need form 3800 (General Business Credit) and their corresponding instruction forms. Disclaimer: This fact sheet should be consulted only for general guidance. SEIA encourages investors or purchasers of qualified solar energy property to seek professional tax advice.