About property?sale and income tax

Hi Paul,

I am working on PPA project simulation. About property tax and sale tax, the website, www.seia.org/policy/finance-tax/solar-tax-exemptions which gives us that “Solar tax exemptions include both property and sales tax exemptions provided by state and local governments to individuals and companies that install solar energy property.” So, in SAM Financial page, we could set sale tax and property tax zero. Am I right?

Another question is income taxes, Are income taxes deductible? it means the solar system operator and investor don't need to pay income taxes (federal and state)? On the output page(excel with equations) there is a line, indicates state and federal tax savings (liability), is this line tells us the tax saving we could get because of income taxes deduction?

Thanks! and best regards,

Zhibin

Dear Zhibin,

Yes. To model sales tax and property tax exemptions, you should set the sales tax rate and property tax rate on the Financial Parameters page to zero.

SAM's single owner PPA financial model assumes that the project is built, owned, and operated by a single entity. That means that the project after-tax cash flow includes any tax liability or savings. A positive value in that row indicates a net tax credit for the year, and a negative value indicates tax owed.

Best regards,
Paul.