The tax world changed on January 1, when Congress’s new, aggressive green energy tax incentives came online. These new tax benefits — massive credits, depreciation, and revenue from solar infrastructure investments — have, unsurprisingly, been popular.  

We are working hard to streamline the process of buying into tax-advantaged solar projects, and part of that effort is making sure that you understand the benefits and potential returns of this strategy. And this week, we’ve shipped a key tool that will help with that effort: A solar tax credit calculator. The new tool has several key features. 

Simple. There are very few moving parts with solar investing. You can invest as much as you want, subject to a minimum investment requirement and a cap on the amount of depreciation you can claim. You can write off ordinary income and AMT, active income and passive. The only real question is your effective tax rate and, therefore, how much you’ll save with each dollar invested in solar projects. This calculator captures that simplicity: Just enter a couple of details about your income and expected return on your other investments, and we’ll show you how much your family could earn with solar investing over time.

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Visual. The solar story is simple: Will your family end up with more money by investing in solar and drastically reducing your taxes today, or will you be better off eating that large tax bill now and reinvesting the remaining capital in other assets? Our calculator will show you the answer in two forms: As a time series chart and as a table that demonstrates the returns from pursuing solar investing. Whether you’re a math person or a visual learner (or both!) you’ll learn what you need to know on one or two screens.

Flexible. There are several forms of solar investment available. The most important distinction is between the simple version — you invest a dollar, it goes into a project, and you get the dollar-for-dollar benefits — and the leveraged version — you invest a dollar, three dollars go into the project, and you get three times that tax savings. Our calculator allows you to model and compare each of these possibilities. We hope this new tool is helpful. If you earn significant income from a business, a high-wage job, or anywhere else, consider making this your first stop.  If you’re planning to reduce the taxes on other forms of income, meanwhile, check out our guided planning tool, which can help you identify the right strategy for your situation. And, as always, if you have questions about how to use our tools, or about tax planning in general, don’t hesitate to get in touch via email or set up a call with our team of experts.

About Valur

We’ve built a platform that makes advanced tax planning – once reserved for ultra-high-net-worth individuals – accessible to everyone. With Valur, you can reduce your taxes by six figures or more, at less than half the cost of traditional providers.

From selecting the right strategy to handling setup, administration, and ongoing optimization, we take care of the hard work so you don’t have to. The results speak for themselves: our customers have generated over $3 billion in additional wealth through our platform.

Want to see what Valur can do for you or your clients? Explore our Learning Center, use our online calculators to estimate your potential savings or schedule a time to chat with us today!