Solar Power Instant Asset Business Write Off – What does this mean for your business when looking to invest in a Commercial Grid Connected Solar System?
With the recent Covid-19 pandemic causing major damage to our economy the government has decided to use its fiscal powers to try and soften the economic blow by incentivising businesses to spend money on equipment and thus helping the economy out. For some businesses this may not be practical due to the lack of capital and/or the greater levels of uncertainty going forward however, for those businesses that have been fortunate enough to be largely unaffected by Covid19 you’re in a great position to benefit from this incentive. By taking advantage of the Solar Power Instant Asset Write Off you could offset your future energy costs quite drastically depending on the size of your bills and your energy consumption habits and claim the full amount (up to a maximum of $150,000) up front.
From a business financial perspective, the main thing to consider is whether you’re going to use your capital or to finance the Solar Power System. This is something that’s probably a business to business decision and you would need to speak to your accountant or your CFO in relation to this. There may also be finance arrangements such as chattel mortgages whereby you can still take advantage of the Instant Asset Business Write Off by claiming the full amount upfront. Please speak to your finance broker in relation to the best structure to implement to ensure that you can best take advantage of the incentive.
Solar Hybrids Team
For further information please call 1300 449 274 or Email us now.