\u00a0<\/span><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_font_size=”32px” header_2_font_size=”28px” header_3_font_size=”24px” header_5_font=”||on||||||” header_6_font=”||||on||||” header_6_font_size=”16px” min_height=”88px” custom_margin=”-8px||7px|||” custom_padding=”0px|||||” global_colors_info=”{}”]<\/p>\n
There are bonuses to the base ITC depending on the size of project and if they meet certain criteria. The chart below details the tax rates by project size.\u00a0<\/span>\u00a0<\/span><\/p>\nFor projects under 1MW ac, businesses can add the following bonuses in addition to the 30% ITC:<\/span>\u00a0<\/span><\/p>\n\n- +10% for meeting domestic content minimums<\/span>\u00a0<\/span><\/li>\n
- +10% for projects sited in energy communities<\/span>\u00a0<\/span><\/li>\n
- +20% for projects in qualified low-income communities or on Indian land<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
[\/et_pb_text][et_pb_image src=”https:\/\/colitetech.com\/wp-content\/uploads\/2022\/08\/SEIA-Commercial-ITC-Under-IRA-Aug-2022.png” alt=”chart detailing the commercial ITC breakdown” title_text=”SEIA Commercial ITC Under IRA Aug 2022″ url=”https:\/\/www.seia.org\/sites\/default\/files\/2022-08\/Inflation%20Reduction%20Act%20Summary%20PDF%20FINAL.pdf” url_new_window=”on” _builder_version=”4.18.0″ _module_preset=”default” min_height=”462.6px” custom_margin=”-12px|||||” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.17.4″ _module_preset=”default” min_height=”137.8px” custom_padding=”19px||23px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” min_height=”237.2px” custom_margin=”-10px|||||” custom_padding=”0px|||||” global_colors_info=”{}”]<\/p>\n
There is also a provision that makes state and tribal governments, Alaska native corporations, certain tax-exempt entities, and rural cooperatives eligible for direct pay. This enables entities without tax liability to receive the incentive as a cash payment. With direct pay, many of the nonprofits, schools, and governments that desired renewable energy systems but couldn\u2019t make the investment can reevaluate their position.<\/span>\u00a0<\/span><\/p>\nLastly, the ITC can now be transferred. The entity receiving the tax credit can transfer the amount to another entity once, helping system owners decrease the cost of their investment. This is especially useful for situations where a business wants to install a solar PV system, or other renewable energy system, but does not own the property. The tax credit can be transferred from the property owner to the business, and the business receives the full benefits of switching to sustainable energy.<\/span>\u00a0<\/span><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_font_size=”32px” header_2_font_size=”28px” header_3_font_size=”24px” header_5_font=”||on||||||” header_6_font=”||||on||||” header_6_font_size=”16px” min_height=”34.8px” custom_margin=”-4px||-8px|||” custom_padding=”9px||9px||true|” global_colors_info=”{}”]<\/p>\n
The IRA brings a lot of good changes to the clean energy industry and makes clean energy more accessible to a greater number of people. Particularly for commercial and industrial customers, the 30% ITC expansion and ability to transfer the credit offers a significant boost to getting more renewable energy systems installed at the point of use. Furthermore, the direct pay provision opens new avenues for non-taxed entities, governments, and rural co-ops to participate in the energy transition as well.<\/span>\u00a0<\/span><\/p>\nColite Technologies\u2019 goal is to get you the best value for your renewable energy project. We research, analyze, and model different systems based on your specific power needs to maximize your return on investment. Talk to one of our team members to take advantage of these credits today!\u00a0<\/span>\u00a0<\/span><\/p>\n[\/et_pb_text][et_pb_button button_url=”https:\/\/colitetech.com\/contact\/” button_text=”Contact Us” button_alignment=”center” _builder_version=”4.18.0″ _module_preset=”default” custom_margin=”15px|||||” custom_padding=”0px|||||” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.17.4″ _module_preset=”default” min_height=”47.8px” custom_margin=”|auto|-2px|auto||” custom_padding=”22px||19px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_nav admin_label=”Post Navigation” _builder_version=”4.17.6″ _module_preset=”default” title_font=”|600|||on||||” title_text_color=”#003764″ title_font_size=”20px” min_height=”10.8px” custom_margin=”6px||6px|||” custom_padding=”0px||3px|||” global_colors_info=”{}”][\/et_pb_post_nav][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
The energy industry\u2019s attention has been laser focused on the Inflation Reduction Act of 2022 for the last several months. With the president\u2019s signature on August 16, the Act is now law and will invest historic amounts of resources into clean energy and emissions-reducing technologies. Just a week and a half later, we are already […]<\/p>\n","protected":false},"author":5,"featured_media":1830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[19,14],"tags":[],"_links":{"self":[{"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/posts\/1804"}],"collection":[{"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/comments?post=1804"}],"version-history":[{"count":14,"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/posts\/1804\/revisions"}],"predecessor-version":[{"id":1836,"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/posts\/1804\/revisions\/1836"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/media\/1830"}],"wp:attachment":[{"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/media?parent=1804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/categories?post=1804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/colitetech.com\/wp-json\/wp\/v2\/tags?post=1804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}