The electric vehicle (EV) movement is here to stay, whether you like it or not. Between the miles-per-gallon argument, manufacturers’ push for new product and facility upgrades, and the reduction of vehicle emissions, there are a lot of moving parts.
One thing, though, that makes me scratch my head is: where do we expect all this electric to come from? It’s not like there are millions of hamsters on millions of wheels working out 24 hours a day to make electricity. Our ongoing conversations with dealers always center around some discussion of us getting more electricity from the grid.
So, let me ask … have you investigated solar? Did you know there are credits, incentives and accelerated depreciation out there for you? Here’s a list:
Federal investment tax credits based on an installed solar photovoltaic (PV) system. The current credit is 26% of qualified costs for construction that begins in 2022 and is placed into service before 2024; 22% credit for construction that begins in 2023 and placed into service before 2024; and 10% for 2024 and years beyond.
State and local tax incentives/rebates. Each state has its own program. Click here for more information.
Federal accelerated depreciation. The PV system is eligible for bonus depreciation, which is 100% through 2022 then reduced 20% per each following year. Keep in mind that the depreciable basis needs to be reduced by 50% of the credit.
Remember, of course, that tax law is fluid. These incentives can always change or be extended.
Another thing to consider is the climate. You don’t have to be Joe the Weatherman to know that Western Pennsylvania doesn’t get a lot of sunshine. I would challenge the proposals you’re provided to make sure they make sense, though with rising energy costs, the sun is certainly a great free alternative. You just have to deal with the upfront costs of the capital improvements, with which the above-mentioned credits, incentives and tax write-offs can help. Oh, and did I mention that if you collect more solar energy than you use, you can sell it back to the grid? That can certainly end up being beneficial.
The next step is to secure a proposal, compare your utility bills and think about your future energy needs. Our concern has always been where the energy is going to come from. Maybe this is the solution or will at least provide a way to alleviate stress on the system.
If this all sounds like it makes sense, please reach out to Steve Barber or any Schneider Downs Auto Advisor. There are a few construction companies out there that can help you walk through the process, provide you with a proposal and complete your project. If you need options, let us know.
You’ve heard our thoughts… We’d like to hear yours
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.