Projects / Rivergate Logistics
Rivergate Logistics
Design 2 · Cash
Federal investment tax credit
Applied| 30% of $2,220,000 system cost | $666,000 |
Accelerated depreciation
Written Down Value (India), 40% is not offered here: the method must match the project's country.
Set by your org admin in Tax benefits
Federal plus state, effective
| Depreciable basis $2,220,000 × (1 − 50% × 30% ITC) | $1,887,000 |
| Year 1: 40% bonus plus 20% MACRS on the rest | $981,240 |
| Years 2 to 6: MACRS 32%, 19.2%, 11.52%, 11.52%, 5.76% | $905,760 |
✓ Commercial project ✓ Cash payment (also allowed on Loan, not Lease or PPA) ✓ Project country United States
The proposal shows "Tax savings depend on the customer's tax position. Check with a tax advisor." under the depreciation line.
Tax savings by year
| Deduction | Tax saving at 28% | |
|---|---|---|
| Year 1 | $981,240 | $274,747 |
| Year 2 | $362,304 | $101,445 |
| Year 3 | $217,382 | $60,867 |
| Year 4 | $130,429 | $36,520 |
| Year 5 | $130,429 | $36,520 |
| Year 6 | $65,215 | $18,260 |
| Total | $1,887,000 | $528,360 |
Effect on payback
Without depreciation4.8 years
With depreciation3.4 years
Net cost $1,554,000 after ITC. Year-1 bill savings $322,670. Year-1 cash back $597,417 with depreciation.