The federal credit for Poway businesses
Section 48E provides a 30% federal credit on qualifying commercial solar, and facilities below 1 MW are exempt from prevailing-wage and apprenticeship requirements, so they reach the full rate automatically. Nothing here is tax advice — we work alongside your accountant.
For a manufacturer with real federal tax liability, that credit plus accelerated depreciation is what makes the payback work. For Poway Unified, or a nonprofit, the route is different: Elective pay, commonly called direct pay, lets eligible tax-exempt and governmental organisations receive the value of that credit as a payment from the IRS rather than as an offset against tax owed.