Small business tax incentives for solar installations extended to June 2019

tax incentives for solar energy

We have written before about the benefits of writing off a solar energy system installation as a small business cost (small businesses with income of less than $10 million). Investments of under $20,000 can potentially be claimed as a depreciation asset under the ATO’s 2015 Federal Budget tax concessions for small businesses.

These investments can be fully depreciated in the first year and will reduce the company’s tax burden by the value of the asset. This incentive reduces a business’ out of pocket expenses by around 27.5% – significant savings for installing a solar energy system for your business.

Extended to June 2019

With an election looming the government are planning some new tax changes and closing some loopholes and that may include this one, but at the moment it has been extended until June 2019. So, the end of this financial year.

“The ability for small business entities to claim an immediate deduction for assets costing less than $20,000 has been extended until 30 June 2019. From 1 July 2019, the immediate deduction threshold will reduce back to $1,000.” source

Use it or lose it

So if you have been considering a solar energy system for your small business, now would be the best time to invest, before this incentive may be gone or reduced after June 2019.

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