Kansas City is a great location for solar energy production. Many people may not realize that Missouri gets more sun than New Orleans and Houston, for example.

Missouri passed Proposition C in 2008 with overwhelming support. Prop C required Investor Owned Utilities (IOU’s) to offer a $2/ watt solar rebate and to generate 15% of their power from renewable sources by 2021. Details on Kansas City’s incentives can be found below:

Federal Solar Investment Tax Credit

30% of the cost of the solar property as a tax credit.

Local Utility Rebate

KCP&L provides a $2/watt rebate, up to a maximum of 25kw or $50,000. Rebates can only go to KCPL account holders and are typically paid within 30-60 days of installation.

Accelerated and Bonus Depreciation

Under the federal Modified Accelerated Cost-Recovery System (MACRS), solar property can be depreciated over 5 years and if placed in service by 12/31/12, the allowable first-year deduction is 50% of the adjusted basis.  In the case of a 50% first year deduction, the remaining 50% of the adjusted basis of the property is depreciated over the ordinary MACRS depreciation schedule. Bonus depreciation can create a net operating loss that may be carried back to the two prior tax years and provide an immediate tax refund.  A net operating loss may also be carried forward 20 years.

Kansas City is a great location for solar energy production. Many people may not realize that Missouri gets more sun than New Orleans and Houston, for example.

Missouri passed Proposition C in 2008 with overwhelming support. Prop C required Investor Owned Utilities (IOU’s) to offer a $2/ watt solar rebate and to generate 15% of their power from renewable sources by 2021. Details on Kansas City’s incentives can be found below:

Federal Solar Investment Tax Credit

30% of the cost of the solar property as a tax credit.