Solar MACRS Benefit Calculator

Model depreciation benefits for solar equipment in minutes. Include ITC, bonus, and tax rates easily. Export schedules to share with clients and lenders fast.

Calculator inputs

Total installed cost before tax benefits.
Uses common half-year rates for the selected class.
Year 1 in the schedule starts here.
Tax credit rate used for ITC estimate.
If off, only depreciation tax savings are calculated.
Common practice reduces depreciable basis by a fraction of ITC.
Example: 0.50 means reduce basis by 50% of ITC.
Applies immediately to adjusted basis, before MACRS.
Used to estimate tax savings from deductions.
Used to discount yearly tax savings for NPV.
Rounding applied to yearly deductions.
Reset

Notes: This is an estimation tool and not tax advice. Confirm eligibility, conventions, and current rules with a qualified professional.

Example data table

Use these sample values to sanity-check your inputs and understand the output structure.
Sample input Value Sample output Value
System cost $150,000.00 ITC rate 30%
Property class 5-year Bonus depreciation 0%
Tax rate 25% Discount rate 6%
Basis reduction Yes (50% of ITC) Adjusted basis $127,500.00
MACRS year-1 rate 20% Year-1 tax savings $6,375.00
Your exact results will vary based on selections, rounding, and local rules.

Formula used

  • ITC amount = System Cost × (ITC Rate ÷ 100)
  • Basis reduction = ITC Amount × Basis Reduction Factor (if enabled)
  • Adjusted basis = System Cost − Basis Reduction
  • Bonus depreciation = Adjusted Basis × (Bonus Rate ÷ 100)
  • MACRS basis = Adjusted Basis − Bonus Depreciation
  • Year i deduction = MACRS Basis × MACRS Rate[i]
  • Tax savings = Deduction × (Tax Rate ÷ 100)
  • Discounted savings = Tax Savings ÷ (1 + Discount Rate)^(Year Index)

The MACRS rate table depends on the selected property class and assumes common half-year convention schedules.

How to use this calculator

  1. Enter your total system cost and select the property class.
  2. Set the placed in service year to align the schedule.
  3. Enter ITC, tax rate, and discount rate for your scenario.
  4. Choose whether to include ITC in totals and reduce basis.
  5. Add a bonus depreciation rate if applicable to your plan.
  6. Click Calculate benefits to view summary and schedule.
  7. Use the CSV or PDF buttons to export your report.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.