MACRS (Modified Accelerated Cost Recovery System)
Any commercial entity that invests in or purchases qualified solar energy property may use MACRS accelerated depreciation schedule. The basis for depreciation is the installed cost of the solar energy system less 50% of any and all cash incentives received in “year 0″.
The American Recovery and Reinvestment Act of 2009 extends the 50% bonus depreciation for eligible renewable energy systems to those place in service. The MACRS depreciation schedule will be 50% of the basis value in 1 year, with the remaining 50% adjusted basis value depreciation over the ordinary depreciation schedule.