HOMER Grid 1.10
Capital based incentives apply to the capital cost of the components. This could either be a tax deduction or a credit or both. In HOMER Grid, you can apply a capital based incentive to the following components: solar, storage, and wind.
Below is an explanation of the various inputs in a capital-based incentive template:
Variable |
Description |
Percent deduction (%) |
Tax deduction as a percent of the capital cost |
Maximum deduction |
Maximum deduction limit |
Percent credit (%) |
Tax credit as a percent of the capital cost |
Credit per kW (per kWh for storage) |
Additional credit per kW (or kWh) of installed capacity |
Maximum credit |
Maximum credit allowed |
Eligible percent (%) |
Portion of capital cost eligible for incentive |
Marginal tax percent (%) |
The percent of tax applicable |
Credit is taxable |
Select this option if the credit is reduced by the marginal tax rate |
Reduces tax basis |
Select this option if deduction and credit reduces the tax basis (cost basis) |
Applies to |
The components that this incentive applies to |
See also
