Accelerated depreciation

Another federal tax break in the USA available to wind power investors, in addition to the Production tax credit, is provided by the “Modified Accelerated Cost-Recovery System” established in 1986. Utility-scale wind projects can be depreciated over an accelerated schedule of 5 years.[1]

Since 2008, wind projects could also claim “bonus” depreciation, a “special depreciation allowance”, of 50% in the first year that they are placed in service.[2] In 2018 it is 40%, and in 2019 30%.[3] Projects acquired and placed in service in 2011 were eligible for 100% “additional first-year depreciation deduction”.[4]