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Grid connection tax deduction

Newbie

Views 210

Replies 2

Good morning,

I am starting a business in a rural location and will require electricity to carry out our business. Given the location and distance from the grid the cost to run power would be similar to the cost of a solar and battery system sufficient to power our operation. It would appear that only grid connection costs are considered tax deductible (over 10 years). Is this the case or would the equivalent 'off grid' solution attract the same tax deductable capital expenditure status?

Kind regards,

BK85.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 1

Hi @Beekeeper85

 

You can still claim a deduction for your off grid-solution. Generally the effective life for solar power generation systems is 20 years and you would spread the depreciation over that period. However, your business may be eligible to use other methods.

 

Here is some more information about temporary full expensing and the instant asset write-off.

 

Hope this helps.

 

2 REPLIES 2

Most helpful response

Former Community Support

Replies 1

Hi @Beekeeper85

 

You can still claim a deduction for your off grid-solution. Generally the effective life for solar power generation systems is 20 years and you would spread the depreciation over that period. However, your business may be eligible to use other methods.

 

Here is some more information about temporary full expensing and the instant asset write-off.

 

Hope this helps.

 

Newbie

Replies 0

Thank you so much for the response, very helpful!