Learn how to leverage Investment Tax Credits (ITC) to reduce your tax liabilities and enhance your financial strategy. Discover key benefits and tips for maximizing ITC in your investments.
Most investors miss out on credits that could slash their taxes. If you’re investing in energy projects, infrastructure, or manufacturing equipment, you may be eligible for tens or even hundreds of thousands in Investment Tax Credits (ITCs). But most investors don’t realize how powerful (and stackable) these credits are.
Investment Tax Credits (ITCs) are federal programs that allow investors to reduce taxes, dollar for dollar, based on the value of their qualified investment and are often stackable with depreciation strategies and local incentives.
Assets such as renewable energy (solar, wind, geothermal, biomass), Energy Storage Systems (ESS), Fuel Cells, Combined Heat & Power (CHP) systems, Biogas, Microgrid controllers, Thermal energy storage, and Hydropower & Marine Energy are often overlooked by traditional CPAs who aren’t focused on incentive mapping.
→ $1.2M project → $312K tax credit + $470K bonus depreciation
→ $280K total → $84K federal credit
At Specialty Tax Advisors, we understand how important it is to make the most of every tax opportunity. Our team works closely with you to identify strategies that can help reduce your tax liability and improve your bottom line.
With over 130 years of experience, our team provides unparalleled insight into federal tax strategies and energy investment credits, helping clients navigate the complexities of clean energy investments and commercial projects. We work side-by-side with your CPA, ensuring that no opportunity is overlooked.
We specialize in identifying and stacking various credits, such as federal business energy investment credits, energy storage, and solar energy tax credits. Our strategies can often be combined with local incentives, increasing the overall value of your tax savings.
All of our studies are built with the IRS Audit Techniques Guide in mind, providing IRS defensible documentation that can withstand any review. Our detailed analysis ensures that your tax credits and deductions will stand up to scrutiny, offering peace of mind during audits.
Having completed over 10,000 studies, we’ve helped clients achieve over $1 billion in tax savings. Our proven track record shows that we consistently deliver exceptional value, leveraging our knowledge of IRS regulations to maximize deductions and credits, including bonus depreciation and investment tax credits.
We offer a free benefit analysis before engagement, ensuring you understand the potential savings and economic benefits before committing. Our approach eliminates any upfront cost or risk, making it easy for clients to explore the full scope of potential tax incentives.
Whether you’re an investor, developer, or business owner, we work closely with your CPA, financial advisors, and other partners to align your tax strategy with your broader financial goals. Our commitment to trusted advisory and comprehensive tax planning helps you focus on what matters most—growing your business and securing your financial future.
The Investment Tax Credit is a benefit that allows businesses and individuals to reduce their taxes by claiming a percentage of the cost for qualifying investments, such as energy-efficient systems and renewable energy projects.
Qualification depends on the type of investment and whether it requires meeting specific requirements. For energy projects, the system or equipment must be operational and meet environmental or efficiency standards within the year of purchase.
Eligible systems typically include renewable energy installations like solar panels, wind turbines, and other environmentally friendly technologies that meet specific criteria.
The percent available for claiming depends on the type of system and when it was installed. Generally, the percentage varies from year to year and can range from 20% to 30% of the total investment.
Yes, individuals who invest in qualifying systems, such as solar panels for their homes, may also be eligible for this benefit, provided they meet all the necessary conditions.
To ensure eligibility, businesses should work with a tax advisor to confirm that the system meets all the necessary requirements and that the proper documentation is in place for filing.
Probably not. ITCs are niche strategies, often missed unless your advisor specializes in tax credit optimization. We partner with your CPA to enhance, not replace, their work.