Benefiting from the Great Sun God

A guy on Seeking Alpha posted his advice on how to take advantages of the incentives available to American Indian Tribes installing solar panels.

Here's the plan:

1. Form a Corporation with tribe members owning the bulk of the stock.

2. Go into the business of building/renting multi-family units.

3. Cash in the Federal Tribal Energy Grant Program (pays 100% up front of the cost of the solar installation). [Those unfortunates NOT possessed of tribal status can do this too, but will have to content themselves with lesser subsidies of about 50% or so].

4. Cash the $2000 Federal Tax Credit for home builders for each unit. (Yes, this appears to be "double dipping", but hey, it might work). In the event it is disallowed, non-tribal companies out there can still do this.

4. Sign up for State rebate programs. In California they are overlapping and extensive (ALL utilities must pay some form of rebate and buy your solar output, and most cities and counties have their own subsidies and tax credits and rebates). PV Rebate (which is paid up front even before the system generates power, funny sort of "rebate") seems to be about $.50/kw. Solar Thermal Rebates (we would be heating the swimming pool and residential hot water with the thermal solar rig, naturally) is $18.59/therm, up front.

5. Sign up for State Property Tax incentives. California? 100% of the System "Value."

6. Keep good records of all the tax credits. Federal: 30% (no limit) Corporate Tax Credit. Add this to the $2000 allowed per unit, and voila, hard to pay Federal Corporate income taxes on the project.

And the rebates, subsidies, incentives, and current sold to the utilities is all tax free.