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MACRS was introduced in order to create a more transparent, predictable and terminable way to depreciate assets. Under MACRS, all of your qualifying commercial solar assets will fully depreciate within five years.This greatly enhances your ability to recover the costs from your solar investment.It is important to be mindful of the number of years that your commercial solar investment has been depreciated because the percentage of depreciation each year varies greatly.Here is how the depreciation percentage changes each year: Year 1: 20 percent Year 2: 32 percent Year 3: 19.2 percent Year 4: 11.52 percent Year 5: 11.52 percent Year 6: 5.76 percent Calculating the value of your depreciation each year The amount that you save on your taxes via your commercial solar investment’s depreciation is based on your effective tax rate for the year.
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