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In San Diego, many commercial property owners overpay in taxes – especially after making renewable energy improvements like installing solar panels.

But there’s a little-known accounting loophole that allows you to “improve” your improvements and save a ton of money in the process?

With cost segregation, you can save money on property taxes by accelerating the depreciation of “green assets.”

Before diving into cost segregation, it’s worth looking at the benefits of solar in general.  If you haven’t already installed solar panels on your property, you’re missing out on a huge opportunity.

Why You Should Install Solar Panels on Your Business

With solar panels installed on your property, you benefit from lower monthly electricity bills – immediately.  Starting on Day 1.

It doesn’t matter what business you’re in.  Having lower energy costs is always a good thing.  Even gas stations in San Diego are increasingly turning to solar.

But the benefits don’t stop there.

You also have a much smaller carbon footprint.  This type of environmentalism is GOLD when it comes to doing business – especially true in the B2C world where image and marketing have such powerful influence over purchasing decisions.  In addition to the great products and services that you already offer, you can now promote the fact that you’re doing something positive to green the planet.


For a more exhaustive list of commercial solar benefits, click here.

Now let’s turn back to cost segregation.

What Is Cost Segregation & How Does it Lower Commercial Solar Costs?

Cost segregation is an IRS-approved tax deferral technique that allows you to “segregate” green improvements for tax purposes.

Instead of depreciating for 39 years in a straight line, any solar-related improvements depreciate in stages over periods ranging from 5 years to 15.

In essence, your solar installation becomes cheaper.  And yet, very few accountants and property owners are even aware of cost segregation.

That’s a shame.  Because without this loophole, you’re consistently pay higher property taxes than you need to.  With this loophole, however, you have more money to reinvest in your business.  Many commercial solar customers also enjoy reduced insurance premiums and better borrowing terms.

Does Your Commercial Solar Installation Qualify for Cost Segregation?

Not everyone can take advantage of solar cost segregation.  As with all things tax-related, there are certain requirements.

We’re not tax experts and the following list is by no means exhaustive.  But if you answer yes to these questions, you may be a good candidate:

  • Is your commercial property worth more than $250,000 (minus the land)?
  • Have you purchased this property within the past 15 or so years?
  • Do you plan on keeping this property for 3 or more years?
  • Have you already made (or plan to make) major green improvements – including a solar PV installation?

If so, cost segregation is definitely worth checking out.  You could be leaving money on the table and overpaying for a system that’s supposed to be saving you cash.

To find out if you qualify for sure, contact us today for a free consultation.