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 The Investment Financial Benefit Based on an $7.5 million SECDC investment project, Investors receive approximately $9,637,000* in cash, tax credits and net tax benefits over seven years. All tax credits are determined in the first year and 43% of the credits can be taken in the first year. - When the project is placed in service (typically the first year), a Federal Business Energy Investment Tax Credit equal to 30% of the total renewable energy facility cost. This credit maybe taken in the first year or taken as an ARRA Cash Grant. If taken as a cash grant in lieu of a tax credit, the grant is paid by the U.S. Treasury within 60 days of application, estimated at $2,109,000 total credit/grant.
- When project is placed in service (typically the first year), a NC Renewable Energy Tax Credit equal to 35% of the total renewable energy facility cost. This credit is taken over five years, estimated at $2,460,500 total credit.
- 5 year MACRS Depreciation tax deduction of the total renewable energy facility cost taken over 6 years, estimated at $6,980,000 total tax deduction.
- Proceeds from sale of system at the end of the investment term, $300,000.
- Revenue from the sale of Renewable Energy Certificates, are estimated at $386,000 over seven years.
- Revenue from sale of electricity to a public utility at avoided cost rate is estimated at $483,000 total over seven years **.
The calculations and information contained herein are for illustrative purposes only. While all information is believed to be reasonable under the assumptions stated, it is not a guarantee of the results indicated. Investors should consult with their own accountants, attorneys and financial advisors for professional advice before investing in any investment. * Estimated total return is calculated assuming Investor has sufficient tax liability to utilize the credits and the ability to maximize depreciation deductions. ** Federal law mandates that utilities purchase power at no less than their avoided cost rate. Revenues from power sales shown are calculated using the average North Carolina Avoided Cost rate as published by NC Green Power. Actual energy sales may be higher or lower depending on the specific utilities involved.
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