The $1 Million Solar Project Tax Breakdown
Waterfall chart showing how credits and depreciation reduce first‑year cash outlay.
ITC Rate: 30%
$1,000,000
Applied to 100% bonus depreciation in Year 1.
ITC base is 30%. Adders stack (capped at 50%).
🏆 YOU RECOVERED ALMOST HALF YOUR INVESTMENT BEFORE GENERATING 1 kWh!
Immediate Relief: $300,000
Year‑1 Tax Shield: $178,500
➤ Immediate Tax Relief
➤ Year‑1 Deduction
⚡ Actual Out‑of‑Pocket
Initial Investment
Money Back (Credits & Shield)
Net First‑Year Cost
Initial Investment
$1,000,000
ITC Credit
$300,000
Reduction in tax liability
Adjusted Basis
$850,000
Basis reduced by 50% of ITC
Bonus Depreciation Tax Shield
$178,500
100% × tax rate
Net First‑Year Cost
$521,500
Your Cash Recovery: $478,500 (48%)
Notes: Calculations assume federal ITC basis reduction (50% of ITC) and 100% bonus depreciation; values are illustrative and update in real time as you change inputs. For tax planning, consult your tax advisor.