SUNEx Solar

sOLAR pOWER sOLUTIONS

 

The long awaited Inflation Reduction Act guidance was finally announced on 11/30/22 and the 60 day window to begin construction closes 1/30/23 after which the ITC requirements listed below come into effect!**


This will have little impact on projects less than 1 MW ac. However, for projects greater than 1 MW starting after 1/30/23, the base ITC base rate is 6% (which is guaranteed to kill any project) but is be expanded to 30% based on 2 conditions:

1) a taxpayer must ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in: (i) the construction of such facility, and (ii) the alteration or repair of such facility the installer must be prevailing wage, in accordance with sub-chapter IV of chapter 31 of title 40 United States Code; and

2) facility is subject to § 45(b)(8)(B), performed by qualified apprentices (Apprenticeship Labor Hour Requirements) and is subject to any applicable requirements for apprentice-to-journey worker ratios under Section 45(b)(8)(B) . Section 3131(e)(3)(B) defines a registered apprenticeship program as an apprenticeship registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act, 50 Stat. 664, chapter 663, 29 U.S.C. 50 et seq.

The 60 day window to begin construction for safe harbor closes 1/30/23 after which the ITC requirements listed below come into effect!**  Establishing Beginning of Construction. The IRS Notices describe two methods that a taxpayer may use to establish that construction of a facility begins: (i) by starting physical work of a significant nature (Physical Work Test), and (ii) by paying or incurring five percent or more of the total cost of the facility (Five Percent Safe Harbor).

For purposes of the Physical Work Test, preliminary activities include, but are not limited to, planning or designing, securing financing, exploring, researching, obtaining permits, licensing, conducting surveys, environmental and engineering studies, or clearing a site.

Under the Five Percent Safe Harbor, construction of a facility will be considered as having begun if: (i) a taxpayer pays or incurs (within the meaning of § 1.461-1(a)(1) and (2)) five percent or more of the total cost of the facility. For property that is manufactured, constructed, or produced for the taxpayer by another person under a binding written contract with the taxpayer, costs incurred with respect to the property by the other person before the property is provided to the taxpayer are deemed incurred by the taxpayer when the costs are incurred by the other person under the principles of § 461.


The White House announced on 12/15/22 a guidebook on the IRA, which can be downloaded. Click the link below to download the full 182 page IRA Guidebook in PDF.

Download the entire 722 page IRA act here:

Need help understanding if and what your project qualifies for, Contact us.

If you want to lower your energy costs and take satisfaction from the fact that you are using renewable energy without any upfront cost then this is the option for you. With a Solar Power Purchase Agreement from SunEx Solar we will partner with local companies in your area to design, build and run the system for you.  We will sell you the energy it produces at a cost less than what you are currently paying for energy. 

If you are an organization that cannot benefit from the tax credits and depreciation, SunEx Solar offers solar leases through our LeaseSave Program.  Under this program SunEx will lease a solar system to you for  7 to 20 years.  At the end of the term you will have the options, including renewing the lease and purchasing the system at "Fair Market Value".  

There are many tax credits and incentives currently available to offset the cost of solar projects. Many of these incentives expire soon, so be sure to Contact Us today to explore what options are right for you.