Solar is no longer an industry of early adopters. Today companies seeking sustainability and energy possibilities to incorporate into their building recognize solar as a conventional asset with a lucrative return on investment. Oftentimes, the initial question that needs to be resolved is, "What is my payback for solar energy?" The answer in North Carolina is quite simple; however understanding tax law is essential which can result in confusion during the purchasing process. Solar energy installations are heavily incentivized by the Federal and State governments through tax credits and accelerated deductions. In turn, a company cannot expect to send the facility director out to the marketplace and be fully briefed on the ins and outs of solar energy financial paybacks and benefits.

To break down the incentives, imagine investing a single dollar for qualifying solar energy equipment. For every dollar invested you can expect the following benefits:

• 30 cents in the form of a Federal Tax Credit in year 1
• 35 cents as a North Carolina State Tax Credit in years 1-5
• 29.75 cents as a Federal depreciation deduction in years 1-6
• 6 cents as a North Carolina State depreciation deduction in years 1-6

If your company paid taxes in 2009 and expects to pay Federal and State taxes in 2010, solar energy can offset up to half of your tax liabilities.

Advanced Green Technologies understands the importance of working through the different management levels. We are comfortable explaining the process to any company looking to make an investment in solar energy. The technologies can vary in the solar space and we work with your facility managers to identify the right type for the chosen building assets. Our team also includes tax advisors that understand the complexities of the tax law, who in turn work to ensure that your financial team, CFO and tax counsel are comfortable with the financial model.

If 2009 ended up on a positive note for your company, and 2010 has good expectations, do not give your money away to the Department of Revenue and the IRS. Use the incentives in solar energy as a tool to invest if your future and simultaneously reduce taxes.