URBAN ENERGY REVOLUTION: SOLAR CARPORTS REDEFINING CLEAN POWER AND PROFITABILITY

In pursuing a net-zero carbon economy by 2050, the rapidly growing trend of solar carports is gaining traction in urban landscapes. Fueled by reduced solar panel costs, generous tax credits and accelerated depreciation including bonus depreciation, these innovative structures have transformed everyday parking lots into powerful, eco-friendly energy farms. Serving as viable alternatives where conventional roof installations are untenable, solar carports promise a leap toward green energy and lucrative cash fow prospects for parking facility owners.

Joel Berenson, CPA

Tax & Business Partner Marcum LLP Boston, MA

joel.berenson@marcumllp.com

Solar carports are structures over parking spaces in parking lots with solar panels that generate power. These structures transform existing parking lots into productive power sources, which increases the cash fow for the parking facility owner.

The power generated from such facilities does not involve high interconnection costs since that power is consumed nearby.

Here’s how the solar energy credit works: the credit for energy property placed in service after December 31, 2021, is 6% of the cost of energy property. Solar energy property is equipment that uses solar energy to generate electricity (e.g., solar panels), to heat or cool a structure, to provide hot water for use in a structure and to provide solar process heat. To qualify for the energy credit, the property must meet the following requirements:

1. The construction, reconstruction or erec- tion of the property must be completed by the taxpayer, or the original use of acquired energy property must commence with the taxpayer.

2. Depreciation or amortization must be allowable with respect to the property.

3. The property must meet the performance and quality standards, if any, prescribed by IRS regulations and are in effect at the time of the acquisition of the property.

4. Energy property cannot be part of a facility that received a credit under IRS Code Sec. 45 for producing electricity from renewable sources. This credit is 1.5 cents (adjusted for infation) for each kilowatt hour of electricity sold by the taxpaye.

However, the Infation Reduction Act of 2022 increased the above percentage to 8%, and the credit is increased to 30% if the maximum net output of the qualifed facility is less than one megawatt, the construction of the facility or technology begins before January 29, 2023, or the facility or technology satisfes prevailing wage and apprenticeship requirements (PWAR) determined by the Secretary of Labor.

The 30% rate is increased to 40% if the qualifed facility is in an energy community or if it satisfes domestic content requirements of energy property. For a facility located in a low-income community or on tribal land, there is an additional 10% credit rate. If it is part of a qualifed low-income residential building project or economic beneft project, the credit rate increases by 20%.

Itinerary

8:30 AM

Arrival and Registration

9:00 AM

Breakfast/Brunch

11:00 AM

Call to Carts

11:15 AM (SHARP)

Shotgun Start

5:00-6:00 PM

Hors D’oeuvres and Cocktails

6:00-7:00 PM

Dinner and Presentation of Golf Winners and Honorees

Ticke

GOLF

$750 per person

$3,000 per foursome

DINNER & COCKTAILS ONLY

$250 per person

Annual Golf Outing

OCTOBER 2, 2023

Honorees

Join us for the National Realty Club Foundation golf outing at the lovely Fresh Meadow Country Club in Lake Success, New York for a great day of golf, food, and networking. The National Realty Club was founded 76 years ago by Harry Helmsley. Currently leading the charge has been Jeffrey Mann with the help of Robert Romanoff, Jonathan Stern, Bob Knakal, Ed Wilkin, Jamiee Nardiello, Gregg Schenker, Orin Wilf, Dean Palin, Jay Neveloff, Pam Swidler, Lou Switzer and others. We are unifying individuals who can gain from one another as well as having a charitable arm to raise money to support NYC in areas that need help.

For more information, please contact penny@nationalrealtyclub.org