Modified Accelerated Cost-Recovery System (MACRS) – Allows the accelerated depreciation of the total capital expense of a solar energy systems in 5 years. The 2008-2009 bonus depreciation allows businesses to deduct 50% of the expense in the 1st year and the remaining 50% over the next 4 years for projects “placed in service” by the end of 2009.
Financial Implications of MACRS
Modified Accelerated Cost-Recovery System (MACRS) – Allows the accelerated depreciation of the total capital expense of a solar energy systems in 5 years. The 2008-2009 bonus depreciation allows businesses to deduct 50% of the expense in the 1st year and the remaining 50% over the next 4 years for projects “placed in service” by the end of 2009.
Figuring deprecation under MACRS
http://www.irs.gov/publications/p946/ch04.html
DSIRE explains MACRS
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US06F&re=1&ee=1
MACRS examples
http://taxpoint.swcollege.com/taxpoint_2001/student/m10/m10-2.html