Investment Tax Credits

What are Investment Tax Credits?

Investment Tax Credits (ITC) are Federal tax credits that are part of the general business credit. They let individuals or businesses receive dollar-for-dollar credits that can be applied against Federal taxes.   The credits are calculated as a percentage of the qualified renewable energy costs. These credits are in addition to normal depreciation expense deductions. The Inflation Reduction Act of 2022 made these tax credits transferable. Tax payers with significant Federal tax liability can now purchase these credits from other entities that create the tax credits.

We worked with a top 20 CPA firm to design our business and process to comply with all tax rules.   We provide all supporting materials for the tax credit calculation and certification process. 

Where do investment tax credits (“ITC’s)come from?

Renewable energy is the future and governments worldwide are encouraging households to make the switch. The US government is no exception to this rule. Federal solar tax credits have been around since 1987 in one form or another. The current version of Federal solar tax credits provides significant incentive to install solar, but these credits will sunset automatically.   The current commercial and residential Federal solar tax credit has seen tremendous success, incenting thousands of solar projects and expanding the supply of renewable energy in the US..

What makes our tax credits better?

Fortified  exclusively calculates the amount of ITC’s based on invoice cost of qualified renewable energy expenses  to construct each solar facility. This eliminates the step-up in basis (appraisal) risk for our projects compared to most of our competitors.

Supporting  memorandums issued by Cherry Beakart, Nelson Mullins and Bryant International Law & Tax Group, addressing technical aspects of how the solar facilities we build comply with the applicable IRS regulations.

At Fortified Solar, we are dedicated to delivering comprehensive solutions that make solar energy more accessible and financially viable for our clients.