Get Rewarded for Investing in Innovation for your Solar Company
The solar industry is thriving more and more with each year that passes. A new energy-efficient system is installed approximately every four minutes in the United States, and it is not projected to slow down with the increased popularity of green initiatives and global warming. The solar industry is at a prime time to invest in research and development efforts for their businesses.
The Research and Development Tax Credit was created in 1981 to encourage innovation amongst businesses. With this incentive, you can offset the costs of your innovation of up to 13% in eligible spending for new and improved products and processes. The best part about this credit is that most of the qualifications are found in day-to-day activities that your business is already doing.
Qualifying Innovation Fields Include:
- Solar & Wind Energy Storage
- Mobile Power
- Smart Grid
- Carbon Sequestration & Biofuel
- Utilizing BIM (Building Information Modeling)
- Conducting Request for Information Process (RFI’s)
There are many areas within the renewable energy industry that can be improved upon. Solar technology is seeking panels that are more efficient. Creating new and improved systems that can determine how to efficiently store energy generated from solar panels, converting solar energy from AC to DC, and creating new products that can reduce installation costs for homeowners and commercial building owners.
Eligible costs that can be used to claim this tax credit are items like employee wages, cost of supplies, cost of testing, contract research expenses, and costs associated with developing a patent. If your solar company is already doing the work, it makes sense to claim back as much as you can and get rewarded for your improvements.
If your company has taken steps to create a reliable, renewable, and clean alternative for energy consumption, you are likely able to qualify for R&D credits. Give us a call at (561) 257-3436 and let us perform an assessment on your business to see if you qualify.