Commercial solar investments see generous congressional tax package benefits
ALISO VIEJO, CA, Jan. 08, 2018 (GLOBE NEWSWIRE) -- XsunX, Inc. (OTC:XSNX), a leading solar and energy saving technologies provider, announced today that the 2018 new tax plan passed by Congress in December, 2017 introduced two provisions favorable for commercial solar installations. These provisions are an expansion of depreciation allowances and a reduction in the corporate tax rate.
With a doubling of the Federal first year depreciation allowance to 100%, XsunX’s solar + energy storage solutions can now offer clients even greater economic benefits. Generally, commercial clients prefer to avoid paying taxes as soon as possible which makes the new first year 100% depreciation rate, that creates a shorter depreciation schedule, more attractive to corporations by allowing them to claim their tax savings sooner.
“With these new tax benefits in hand, XsunX’s marketing channel may just have doubled,” stated Tom Djokovich, CEO of XsunX, Inc. “Our New Year’s resolution is to call back and present improved financial projections to prior sales contacts. And, we are also looking forward to working with future sales contacts to whom we can now present more compelling benefits for investments into solar.”
Commercial clients using XsunX’s solar + energy storage solutions can lower their utility energy bills significantly. Lowering these bills can make commercial entities more profitable, which can, if these profits are not re-invested in other ways, increase tax liabilities. However, the new tax plan also provides a Federal corporate tax rate reduction to 21%, from 35%, which can reduce tax liabilities while also improving the annual rate of return for solar investments.
“In the past, we’ve seen clients excited over the prospect of using energy savings to re-invest in new equipment, expansion efforts, or even incentivize employees,” stated Tom Djokovich, CEO of XsunX, Inc. “However, a 14-point reduction to the corporate tax rate significantly increases the attractiveness of going solar regardless if clients choose to bank the savings or reinvest in their companies,” concluded Mr. Djokovich, CEO of XsunX, Inc.
Individually, either of these two tax benefits are a bonus. Together, they can significantly help add to savings and profitability to improve the net present value (NPV) in analyzing the value of a solar investment. Generally, an investment with a positive NPV will be a profitable one, and with most solar investments having already provided positive NPV projections, the new tax plan only further underwrites the value of investing in self-generation solar solutions.
About XsunX:
XsunX specializes in the sale, design, and installation of solar photovoltaic power generation (PV), and energy saving technologies to provide our clients long term savings, predictability, and control of their energy costs. Making solar energy a sound investment for our clients is our mission.
For more information, please visit the Company's website at www.xsunx.com, or to learn more about the benefits of solar energy for your business or home schedule a free PV project assessment.
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