Solar tax credit · Owners and high earners who owe federal tax
Three years of tax you already paid. Back in your hands.
Solar equipment sized to your tax bill. The credit comes off the federal tax you owe, this year and the last three. Your CPA files it.
Federal tax you no longer owe, this year and the last three
$0
What’s in this number
After a $785,043 down payment you come out $532,400 ahead in cash, yours to use anywhere: about $1.68 back for every $1 you put in, $694,612 of it from the last three years.
Pays about $300,000 a year in federal tax (married filing jointly, same the last three years): illustrative $1,317,443 of tax no longer owed against a $785,043 down payment, $532,400 ahead.
A 40% credit, 39% down, a first-year write-off on 80% of the equipment, 2026 brackets. Illustrative example. Confirm with your CPA.
How does the solar tax credit strategy work?
Longtable sizes solar equipment to the federal tax you owe. You put 39% down and own the equipment; a 40% federal investment credit plus a first-year write-off offsets this year’s federal tax and reaches back to the three prior years, so in the illustration $1.67 of tax is no longer owed per $1 in. Your CPA confirms the figures and files.
The proof
Your number, and the proof.
Chart 1
Four years of federal tax, before and after
Married filing jointly, no state income tax, $1,000,000 a year, this year and the last three.
Federal tax wiped out, this year and the last three
$982,740
What’s in this number
Another $315,852 of tax savings comes in later years. They own $1,983,250 of equipment and put $773,468 (39%) down.
Source. Longtable engine: 40% tax credit, 39% down, a first-year write-off on 80% of the equipment’s cost, 2026 tax brackets; reaching back to past years under tax code §39(a)(4).
Illustrative example. Confirm with your CPA.
View the figures as a table
| Step | Amount |
|---|---|
| This year: Federal tax before this strategy | $292,165 |
| This year: Equipment write-off, year one (at 37%) | -$189,440 |
| This year: Tax credit used this year | -$102,725 |
| This year: Remaining, this year | $0 |
| Past three years: Federal tax paid, past three years | $890,141 |
| Past three years: Tax credit used on past years (§39) | -$690,575 |
| Past three years: Remaining, prior years | $199,566 |
| Write-offs above the yearly limit (§461(l)), saved for later years | $315,852 |
| Equipment owned | $1,983,250 |
| Down payment (39%) | $773,468 |
| Federal tax credit at 40% | $793,300 |
How it works
From the number above to tax you no longer owe.
Run the illustration.
Done, above. Bring it to a 30-minute call. Your CPA is welcome; nothing to buy or sign.
Your CPA reviews it.
The position, the equipment contract and the written risks go to your CPA before anything moves.
Own the equipment. Keep the tax.
39% down makes you the owner. Your CPA files the credit and the write-off: this year’s federal tax first, then the three years already paid.
More information
For your CPA. The §48 investment credit at 40% of the position (30% base plus the 10% domestic-content adder) plus first-year depreciation on 80% of the equipment, against a 39% wire. Depreciation offsets this year’s tax first, the credit fills what is left, and the remainder carries back up to the federal tax of the three prior years. Losses above the §461(l) limit carry forward.
The structure. Direct ownership through your own LLC: no fund, no partnership, no K-1s. Passive by default under §469 unless your CPA confirms material participation. The system is placed in service inside the tax year it is claimed for, so the full year counts. You hold the equipment five years; it earns lease income while you do.
Deductions and credits are different things. A write-off trims the income you are taxed on: in the 37% bracket, $100,000 saves about $37,000. A tax credit comes straight off your tax bill: $100,000 saves $100,000. This strategy uses both.
The risks, plainly. You would only ever owe what is left on the loan if the two institutional companies that operate your system and buy its power both failed and folded on the loan first, and only then. They are fully vetted, open-book institutional companies that have already run over $100,000,000 of funding through this exact strategy with zero issues, ever. Your exposure sits behind both of them. Sell inside five years and part of the credit is recaptured. The credit can reach back only three years, so each year paid in full eventually falls out of reach. Tax law can change. We put it in writing, and so does your CPA.
Is it a fit?
Built for.
- You owe federal tax this year, or paid it in the last three.
- A big profit from selling something (a “capital gain”), ahead of you or behind you.
- You can pay or finance roughly 39% up front.
- You want an investment that pays you income.
- Your CPA will not review a tax credit plan.
Straight answers
Questions, answered.
- How much comes back per dollar?
- $1.67 of federal tax no longer owed per $1 in, up to $1.78 in the top bracket: a 40% credit plus a first-year write-off, against 39% down. Your CPA confirms.
- Will this lower the tax on my paycheck?
- Not by default. Tax law (§469) treats leased equipment as “passive”: something you own but don’t actively work in. So these tax breaks only reduce tax on that kind of income, unless your CPA confirms you actively take part (“material participation”).
- What are the risks?
- You would only ever owe what’s left on the loan if the two institutional companies that operate your system and buy its power both failed and folded on the loan first, and only then. They are fully vetted, open-book institutional companies that have already run over $100,000,000 of funding through this exact strategy with zero issues, ever. Your exposure sits behind both of them. Sell within five years and part of the credit is paid back. Every risk is in writing before you commit.
- What does it cost?
- The illustration and the call cost nothing. The down payment is 39% of the equipment; every term of the purchase is in writing before you sign.
Schedule a Meeting
Before your next tax payment.
Thirty minutes. Your CPA in the loop.
Or call 248.742.0065Mon – Fri: 9:00 AM – 5:00 PM