James Coombes, Founder and Director of Painted Rock Capital Group, returns to the show to explain the tax incentive side of financing energy systems. In this episode, we discuss the Inflation Reduction Act, the financial benefits for businesses investing in on-site energy projects and critical questions that every business owner should consider, from understanding the potential tax credits based on tax liability to the complexities of self-financing larger energy systems.
You will learn the importance of professional guidance and the need to consult with tax professionals to navigate the intricate decisions surrounding on-site energy investments. Listen in as James explains the depreciation of these assets, emphasizing the significance of marginal tax rates and how they impact the overall value, and more.
Listen To The Episode:
What You’ll Learn In Today’s Episode:
- What the Inflation Reduction Act is.
- What the tax credits entail if you invest in an onsite energy project.
- The importance of having the right expectations.
- What you can do if you want to self-finance a system.
- How these assets can be depreciated.
Ideas Worth Sharing:
- “You must talk to your tax professional to guide you through these decisions [around investing in on-site energy projects].” – James Coombes
- “The depreciation value is dependent on your marginal tax rate. So when we do have LLCs that aren’t paying a 21% corporate rate, they’re paying an individual rate often upwards of 30%. That depreciation is even more valuable to you in that context.” – James Coombes
- “When we talk about financing tax credits, we’re talking about passing the benefit of the credit through in the form of a lower cost to the customer.” – James Coombes
Resources In Today’s Episode:
- James Coombes: LinkedIn
- Painted Rock Capital Group
- Gareth Evans: LinkedIn
- Dan Roberts: LinkedIn
- White Paper: Unlocking the Benefits of Onsite Energy with Incentives from the IRA
- Press Release: Revolutionizing Your Tax Season: VECKTA Integrates Inflation Reduction Act Features for Bigger Business Gains
- VECKTA: News
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