Commercial Solar Analysis for Michigan Businesses

• Qualifying commercial solar and storage projects may be eligible for a federal investment tax credit based on eligible project costs, subject to current law and project-specific requirements.
• Additional bonus tax credits — including domestic content, energy community, and low-income community bonuses — may be available for projects that meet separate eligibility, documentation, and application requirements.
• Eligible agricultural producers and rural small businesses may be able to apply for competitive USDA REAP funding; awards are not guaranteed and depend on eligibility, funding availability, and application quality.
• Qualified solar and storage property may be eligible for accelerated depreciation, including five-year MACRS treatment and, for certain eligible property, bonus depreciation under current tax rules.
• Certain eligible taxpayers may elect to transfer some or all of an eligible federal clean-energy tax credit to an unrelated taxpayer for cash, subject to IRS registration, filing, and documentation requirements.
• Eligible tax-exempt organizations, including many nonprofits and government entities, may use elective pay (direct pay) to receive the value of qualifying federal credits directly from the IRS.
• None of these programs are guaranteed for any specific project. Final eligibility depends on current federal law, project facts, documentation, and — for grants and allocated bonuses — competitive review or allocation availability.

Incentive amounts, depreciation treatment, grant eligibility, transferability, elective pay, tax-credit availability, and program timelines depend on current rules, project details, and the customer’s individual circumstances. Customers should review tax matters with a qualified tax professional and grant requirements with an experienced grant professional.

Review the site's solar incentive education and official resources.