solar for businesses

Solar Tax Credits For Businesses In Florida 2023: Full Explanation

Solar Investment Tax Credit (ITC) 2020 Step Down

A Solar Investment Tax Credit (SITC) is a form of tax credit the Government offers nationwide to owners of commercial and residential buildings who invest in solar panels to harness renewable energy to reduce electricity consumption. What are the main benefits? Owners get tax deductions for the total cost of installing the solar panel system and even considerable savings on monthly energy bills.

The good news is that the Government announced a Solar Energy Tax Credit Extension for 2023. Stay with us as we tell you everything you need about these deductions, the percentages, eligibility criteria, how to apply, and much more.

Let’s dive in!

Understanding Solar Tax Credits

Definition of solar tax credits

The solar tax credit is a federal incentive the Government offers to commercial building owners who install solar panels on their property through December 2034. This type of credit allows property owners to recover a fixed percentage of the solar panel system’s cost and a lower cost per kW of consumption, making it attractive to taxpayers.

Importance and advantages for businesses in Florida

The Solar Tax Credit offers excellent advantages to businesses in Florida since it allows them to save money by improving their property, and the Government reimburses them a percentage of the installation. But there is much more to it:

  • Savings on electric bills.
  • Reliable and stable energy source.
  • Not affected by power outages or blackouts.
  • Reduce greenhouse gas emissions.
  • Demonstrate commitment to environmental sustainability and social responsibility.

Overview of federal and state-level tax credits Tax credits are incentives created by the Government to ease the burden on taxpayers, in this case, allowing businesses in the Florida area to modernize their energy consumption sources for the planet’s sustainability and commitment to future generations. Its goal is to make it easier for businesses to make the transition. This type of incentive is not new in our state; since 1997, state legislators have promoted programs to transition to renewable energy and be more environmentally conscious.


2. Solar Investment Tax Credit (SITC)

Eligibility criteria

  • This benefit can only be claimed once, in the tax year, your solar panel system is installed.
  • You can claim the Solar Investment Tax Credit if you installed them from 2006-2034.
  • You can only claim it for the original installation of the system, not for reuse or upgrade.
  • If you use your system for a community project and it does not exceed the electricity consumption standard.
  • It only applies to taxpayers who own the system, not those who lease the property.

Pro tip: certified companies will calculate the value of the credit to be received in addition to the contract, so you know the value before you buy.

Details on the credit percentage and maximum credit amount

According to the Inflation Reduction Act of 2022, the maximum ITC percentage taxpayers could claim up to 30% of the total installation cost of their solar equipment. If the installation cost is $16,000, you could deduct a value of $4,800; if your tax is less than the credit amount, the difference will be applied to the following tax year.

Steps to claim the Solar Investment Tax Credit

  • To claim the tax credit, you must only fill out income tax form 5695 and fill it with your annual income tax return.
  • You must then include the installation of the solar equipment as part of the cost of ownership and the total cost of installation shown on the contract with your supplier.
  • Enter the corresponding calculations on lines 6 (A and B).
  • Complete the form’s final lines (15 and 16) with the exact amount to be deducted.


3. Solar Energy Tax Credit Extension Overview

In 2022 the Federal Government created the Inflation Reduction Act, which made it even more attractive for homeowners to transition to clean energy by incorporating a 30% income tax deductible ITC. The purpose was to reduce electric energy consumption and dependence on fossil fuels.

Importance and impact on businesses in Florida

The acquisition of the equipment could be an obstacle to using solar energy since it is a considerable investment. However, the Commercial Solar Tax Credit has excellent advantages, from using more stable energies with less environmental impact, efficient energy consumption, etc.

 Details on the extension timeline and eligibility requirements

The Government offered a 30% ITC for 2022, whose value would decrease in the following years. However, they have decided to extend the value for 2023. Next year, homeowners will only be able to claim 26% of the total costs, and by 2035 the credit will cease to exist. To claim it, you must be the exclusive owner (not a lessee) of the solar panel system, and the equipment must be new or not previously used.


4. Commercial Solar Tax Credit

Eligibility criteria for businesses in Florida

Commercial building owners must only purchase a solar panel system by 2023 to qualify for the 30% ITC extension. They may not lease equipment or purchase solar energy from third parties.

 Credit percentage and limitations

We have insisted that the value of the Commercial Solar Tax Credit for this year only remains at 30%, which you can deduct from this year’s tax return. That percentage is deducted from expenses such as:

  • The solar panel system.
  • The energy storage components.
  • The installation cost: Those independent devices whose hourly consumption does not exceed 3Kw.

Pro tip: Remember that if you purchase other equipment that consumes this type of energy, its cost cannot be included in the credit.


5. How to Maximize Solar Tax Credits in Florida

Tips and strategies for businesses to maximize their solar tax credits

  • The ideal time to purchase a solar panel system is in 2023 to take advantage of the maximum 30% ITC amount and be able to deduct it from your tax return.
  • We suggest you purchase all the necessary storage components based on your property’s energy demands to add to your total cost deduction.
  • Before purchasing your solar panel system, trust a certified company. Otherwise, you will not be able to apply for the benefit.

Considerations for solar system installation and documentation

  • It is crucial to consider your property’s current and future energy needs when selecting the ideal system.
  • Think about the geographic location of your property, the amount of sunlight it receives during the day.
  • You should check the condition of the roof, its angle, and its orientation to see if it can support the system.
  • Remember the permits you must apply for from the county to do this work.

Working with certified solar installers and tax professionals

The company you trust must be certified to handle this type of equipment. A professional will provide a contract indicating the price, time, and work schedule. They will also provide the manufacturer’s warranty document and an installation guarantee. Remember that a professional company will even calculate the ITC for installing your equipment so that you have an idea even before you sign.



The advantages of the Commercial Solar Tax Credit for businesses in the Florida area are many; not only does it allow you to switch to more stable, sustainable, and efficient energy sources. It protects your equipment from events such as power failures or outages and allows your business to run smoothly without leaving a footprint on the environment. It also allows them to obtain a decrease in their income tax return and is a more economical option in the long term since installing solar panels reduces the consumption of Kw per month.

What are you waiting for to make the switch? Ready to install your solar panel system?

Trust Advanced Green Technology!

Florida Solar Net Metering Bill Vetoed

Florida Solar Net Metering Bill Vetoed is a Big Win for Commercial Property Owners and Businesses

Florida Governor, Ron DeSantis, Vetoed House Bill 741, Eliminating the Cost Increase of Solar Energy for Commercial Property Owners

In a big win for solar energy, Florida Governor Ron DeSantis recently vetoed House Bill 741, which sought to phase down the value of solar net metering and allow utility companies to add fixed charges to solar customer bills. This victory, and the current Solar Investment Tax Credit (ITC), make this the best time to install solar on your commercial building.

House Bill 741 was originally passed on March 8 with a vote of 83-31. Now that the governor has vetoed it, the bill will be sent back to the House, which will be available for consideration through the end of the current session. It will take two-thirds of the members voting in each House to override the veto.

The veto prevents a decrease in the amount paid to solar customers, which would amount to a small fraction of the retail rate. The phase-down would have reduced payouts to solar customers by 50% in four years and continue to drop to the avoided cost rate by 2029. The bill also would have allowed fixed charges to grid-connected solar customers beginning in 2026. The limit of these charges was not stated in the bill, opening the door to additional costs for solar customers when inflation is already high.

Read the letter from Govonor Ron DeSantis

26% Solar Tax Credit Available Until the End of 2022

If you are a commercial property owner considering installing rooftop solar, now is the best time to make the switch. The veto of HB 741 keeps solar at its current rate, and the ITC is the highest it will be. The tax credit will remain at 26% until the end of the year, when it will then drop by four percent and continue its decline. This means that all solar energy projects that begin construction this year will be eligible for the 26% tax credit. The credit will drop to 22% in 2023 for all market segments, including commercial and residential, then down to 10% permanently for the commercial and utility markets in 2024. The tax credit for residential properties will come to a close in 2024. Commercial and utility-scale projects that have started construction before December 31, 2023, may still qualify for the 26% or 22% ITC if placed in service before January 1, 2026.

Safe Harbor Can Help Protect Your Solar Tax Credit for Five-Years

Additionally, the current 26% ITC can be protected for commercial solar projects completed up to five years into the future through a simple and prescriptive process called Safe Harbor. Our experts can help you understand how to protect this valuable tax advantage for your business.

Commercial Solar Project Return on Investment

The typical solar investment can see a return on investment (ROI) in five to ten years using the ITC and accelerated depreciation. Advanced Green Technologies value ROI based on energy consumption combined with intangibles such as preserving the rooftop and other additional benefits.

Get Your Free Solar Project Estimate Today

So, if you’re considering solar, give us a call as soon as possible to take advantage of the most savings this year. For a free solar site analysis, call (800) 638-6869 or click here.


2020 Solar Energy Tax Credit for Businesses

Solar Investment Tax Credit (ITC) 2020 Step Down

Solar Tax Credits for Businesses in Florida 2020

Take Advantage of Important Solar Tax Credits for Bussiness and Commercial Properties

As the cost of going green becomes more affordable each year, many commercial building owners are tempted to hold off on installing solar panels in an attempt to get the best deals. But as the federal investment tax credit (ITC), also known as the solar tax credit for businesses, decreased on January 1 from 30% to 26%, the clock is ticking on getting the best deal on your solar investment. Now is the best time to install a solar roofing system before next year’s step-down.

What is the Solar Tax Credit for Businesses?

The federal solar tax credit previously allowed commercial building owners to deduct 30% of the cost of installing a solar energy system from their federal income taxes until 2020. The tax credit can also be claimed as soon as the construction of the system begins. The credit and depreciation benefit helped reduce the system price by as much as 60%. Add to that savings from a reduced utility bill, and business owners were looking at a bright investment.

Solar ITC Step-Down Schedule

Since the ITC was enacted in 2006, the U.S. solar industry has grown by more than 10,000%, with an average annual growth of 50% over the last decade. Even with this success, starting January 1, 2020, the value of the tax credit began its decline from 30% to its current 26%. Next year, the credit drops even further to 22% and plummets to a permanent 10% in 2022 and onward. A four percent decrease in 2021 may sound small, but when installing a solar panel system, especially on large commercial buildings, the loss in savings can be significant.

Things to Consider When Installing Solar on Your Commercial Property

You’ve decided now is the time to go green – so what’s next? Be sure to confirm the installation timeline once you have chosen a company. Schedules vary so it is important to confirm that your system will be installed before the end of the year to get the maximum tax incentive.

Seeing (the Savings) is Believing

Some of Florida’s largest businesses like Publix Super Markets, Ed Morse, Lockheed Martin, and Advanced Roofing have installed solar on their properties, from rooftop installations to solar carports. Solar has a short payback period, provides steady financial returns, and helps business owners hedge against rising energy prices. According to our data, Advanced Roofing paid on average $1,623.00 in monthly electricity bills before going solar. After the installation of an 84-kW solar carport at our headquarters in Fort Lauderdale, our electricity bill is approximately $890.00 ­­– a 55% reduction.

How Much Money Can Solar Save Your Business?

Contact us today for your complimentary energy audit and project quote.


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