Solar Panels

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    Topic
  • #189229
    Anonymous
    Inactive

    My company purchased Solar Panels for our many facilities. If your company has Solar Panels, how many years did you depreciate them? Thanks for any feedback in advance!

Viewing 6 replies - 1 through 6 (of 6 total)
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  • #612381
    Mary 2496
    Member

    I'm almost positive it's five years but double check the IRS website.

    #612382
    Tripp11
    Member

    As a cross reference, the American Hospital Association Estimated Useful Lives manual has solar equipment at 10 years.

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    #612383
    Anonymous
    Inactive

    I think Mary has it. IRS.gov puts “energy property” in the 5 year class. The only definition I could find of energy property is from Cornell's website. It seems believable.

    https://www.irs.gov/pub/irs-pdf/i4562.pdf

    https://www.law.cornell.edu/uscode/text/26/48#a_3

    #612384
    koz124
    Member

    This is interesting as I work at an energy utility and the hot topic is the number of cooperatives building solar gardens for their members. Each member “owns” the output of the panels they buy for 20 years. However, it does look like the government states 5 years as the life for energy renewable items. Since we have not yet started our solar garden venture, I have little experience to offer, but I'd be intrigued to hear others.

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    #612385
    Anonymous
    Inactive

    Thanks! That was helpful!

    #612386
    Anonymous
    Inactive

    Oh man, what happens to the basis if you take any credits on energy products like that? Do credits not reduce basis unlike something like bonus depreciation?

Viewing 6 replies - 1 through 6 (of 6 total)
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