I am located in the USA. The federal government allows a 30% tax credit on solar. Details here: http://programs.dsireusa.org/system/program/detail/1235
In addition to that, it appears to me that solar is also tax deductible. Details here: http://programs.dsireusa.org/system/program/detail/666
The second link contains the following quote:
If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay).
So, the way this sounds to me is as follows: - I purchase $20,000 worth of solar equipment - I get a tax credit of $6,000 (30%) - The remaining cost (70% or $14,000) is tax deductible - I earn back 15-20% or whatever my rate is on this ($2,100 - $2,800)
Can anyone confirm this is how it works? I'd really hate to pull the trigger on an expensive system (more than my example) and not have my numbers worked out properly.