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The Tax Benefits Of A Solar Power System

In our previous posts, we covered some wonderful rebates and incentives including Small-scale Technology Certificates (STCs) and Feed-In Tariffs (FiTs), which allows your business to recoup investment and profit over time from your solar energy system.

At the moment, the Federal Government is also offering significant tax benefits for installing a commercial solar system.

What tax benefits are available?

The Instant Asset Write-Off scheme works so that businesses can instantly write off new assets under $150,000, if installed and operational by 30 June 2021. Also available is the Backing Business Incentive, which applies when an investment is over the $150,000 threshold.

Instant Asset Write-Off scheme

How much can I invest in a solar system?
The Federal Government is staging an economic recovery that prioritises the ability of your businesses to invest in their future.

If you first used or installed a solar system between 12 March 2020 until 30 June 2021, and purchased it by 31 December 2020, your business can instantly write-off the investment by up to $150,000 (up from $30,000) if your business has an aggregated turnover of less than $500 million (up from $50 million).

When you invest in a commercial solar system, not only will you power your business needs but also be eligible for FiTs and STCs that will further improve your balance sheet.

Is this the right time to invest in commercial solar?
Yes – all commercial solar systems will be able to be written off immediately.

Not only that – you will be able to use the same write off to improve the overall energy efficiency of your business, through investing in other assets such as building insulation or battery storage systems.

The only limitation is that you keep the investment under the price of $150,000.

Backing Business Incentive

To provide even further incentives for your business to invest in new assets such as commercial solar, the Federal Government is also deploying an incentive that accelerates deductions on depreciation. This allows for significant tax benefits for assets over $150,000.

These new depreciation rules apply to new assets which are held after 12 March 2020 and first used or installed for a taxable purpose by 30 June 2021. Instead of the standard 15% deduction available on the business portion of a new asset, under these rules you will be able to deduct up to 57.5%.

Contact us now

We want to help your business take advantage of the Federal Government’s tax benefits for investing in assets such as commercial solar today.

We recommend, however, obtaining advice from a professional accountant should you need more specific assistance with the taxation schemes above.

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Give Power Saving Solutions a call today on 1300 659 229 to learn about how an Enphase system can optimise your energy production and with market-leading value. You can also visit our website for more information: https://powersavingsolutions.com.au/ .