But being able to depreciate the full value the year the property when it is put into service ultimately doesn't save them money on their taxes per say. It just means they have less profit now vs having less profit over the life of the asset. Tax accountants obviously like that as their goal is to pay as little taxes now since then you can use the money for other things now and you never know what the tax rates/rules will do in the future.
Maybe this had something to do with those low leases that are no longer offered:
http://www.azcentral.com/business/artic ... lurch.html
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"On May 8, administrators requested more information about the system and asked for a cost breakdown. Treasury officials indicated the system appeared to come in above market cost.
Flinn said in an e-mail that the company had never before been questioned about costs. Federal guidelines allow $7 per kilowatt on systems of the project size. She said Perfect Power's price was $6.96 per kilowatt."
So I wonder what their actual cost on this example system was. Say it was a 3,800 watt system and they claim the retail price is $26,448 so they want a $7934 government check. Then the customer pays $4,500 so they've received $3.27 a watt. Then with some more incentives from AZ/utilities there is enough money to make a profit. Maybe the customer has to pay more monthly as well?