SMALL PROJECT
CASE STUDY
Maximizing Tax Savings with a $180,000 Solar Cash Investment
By leveraging HV-Solar’s Sale-Leaseback model and funding the project in cash, this client turned a $180,000 investment into substantial Year 1 tax relief and predictable long-term income—without operational burden. The structure provided a powerful combination of bonus depreciation, a 40% ITC, and passive income, all under a compliant and fully managed solar ownership strategy.
Client Profile
An individual investor in New Jersey, filing jointly with a total income of $380,000, sought to reduce an expected $115,406, in tax liability and generate stable passive income while maintaining full IRS compliance.
Investment Overview:
The client invested $180,000 in HV-Solar’s fully managed solar lighting infrastructure, funded entirely with cash. Structured through HV-Solar’s 20-year leaseback agreement, the project offered a turnkey solution with no maintenance or asset management required.
Tax Benefits & Immediate Savings:
In Year 1, the client qualified for a:
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$72,000 Federal Investment Tax Credit (ITC)
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$34,560 in Federal Bonus Depreciation
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$2,293 in State MACRS Depreciation
This totaled $108,853 in tax reductions in Year 1 alone and $118,026 over six years with federal and state depreciation combined.
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Net 'At Risk' Capital & Returns
After accounting for Year 1 tax savings and cash flow:
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Net ‘At Risk’ Capital = $62,146.80
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Year 1 Lease Income = $9,000
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Total Year 1 Benefit = $117,853.20
This project offers long-term income with low capital exposure, structured for tax optimization.
Long-Term Revenue & Financial Gains
In Year 1 alone, the investor realized $117,853 in combined tax benefits and lease payments, reducing their net at-risk capital to just $62,147.
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From Years 2 to 20, the project generates $9,000 per year in fixed lease payments, fully passive and contractually secured. Over the full term, the investor receives $298,026 in cumulative cash flow, achieving a 166% Multiple on Invested Capital (MOIC).
John S.
"A smart, low-risk strategy that delivered immediate tax savings and long-term income.”