Hi,
Now that we are finally underway to put 2025 behind us and focus on 2026, I would love to introduce you to the best kept secret strategy available! If we have already discussed capital loss harvesting, retirement, rentals, businesses, oil and gas investments, and yet it has left you wanting more – this opportunity might be just for you to save hundreds of thousands of dollars on your tax bill.😀
Let’s talk about solar investments! The timing is genuinely exciting. You can claim a 40% federal Investment Tax Credit (30% base + 10% Domestic Content bonus) plus 100% bonus depreciation in year one from 80% of your initial investment (yes, a bit of a legal double dip there 😈😏).
!Reminder – The credit is dollar-for-dollar against your tax bill. The Bonus depreciation deduction is there to shave off the highest marginal tax bracket you are hitting, effectively saving you 37 cents per dollar (should you fall into the 37% tax bracket).
Here’s what that looks like on a $1,000,000 investment:
- $400,000 federal tax credit, applied directly against your taxes
- $800,000 written off in year one via bonus depreciation
- Combined first-year tax benefit is well into six figures, depending on your bracket
The good news is we’ve partnered with a solar assets broker and manager that ensures all the 2026 Domestic Content requirements are met – U.S.-sourced steel, modules, inverters, prevailing wage compliance – so the 40% credit is locked in for the project. That takes a huge piece of the complexity off your plate. They will also ensure that you would have met material participation requirements by the end of year 1.
The credit is scheduled to phase out in 2028, so realistically the next two filing years are the window to act on this!
If you would like to explore whether this fits your situation, just hit reply by Wednesday next week and we will find a time for a free 15-minute call.
I’m happy to walk you through the numbers on your specific circumstances and answer any questions – no pressure either way.
Looking forward to hearing from you!
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com