Under section 1603 of the American recovery and Reinvestment
Treatment of Payments for Specified energy Property in Lieu of Tax Credits under ARRA of 2009
Answers
That gets treated as a normal depreciable asset in its appropriate class. This rule just prevents double-dipping i.e. placing 100% into depreciable assets plus getting a 50% grant. In this case 50% gets depreciated over time and you get 50% supposedly within 90 days.
Remember of course that often not all the assets qualify for the refundable credit so the maths above is the best case.
3
Rather than reducing the asset basis by the grant you just reduce the basis by 50% of the grant
If the asset is only reduced by 50% of the grant, how is the remainging 50% handled?
What is the basis under S48 if a solar voltaic project is financed by a lease/loan in conjunction with state rebates and the Federal ITC credit? Is the basis reduced by the value of the state rebate or no?
What is the basis under S48 if a solar voltaic project is financed by a lease/loan in conjunction with state rebates and the Federal ITC credit? Is the basis reduced by the value of the state rebate or no?
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