Tax Considerations

We can’t run from the taxman! Well a lot of the dust has settled in regards to policy, rules and regulations for PV in Ontario and we now have firm information that on a number of very serious issues such as taxation, depreciation and assessment.
CRA- Canadian Revenue Agency

They have issued some rulings that directly affect MicroFIT installations. In a nut shell you can use accelerated CCA (but remember you will have to charge tax on the system on your roof – not your entire house) when you sell your home later on). Obtain a GST/HST number to get the rebate. You might make an application to use the “Quick Approach” to HST filing which is easier to administer and makes sense from a financial/tax point of view for solar

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html

http://www.cra-arc.gc.ca/tx/bsnss/thrtpcs/nt-ft/q1-eng.html

House Assessment /House Taxes

The house and property will not be reassessed for a higher cost because of your rooftop or ground based solar installation if under 10 Kw under microFIT.


Municipal Property Assessment Corporation (MPAC) is the agency responsible in Ontario for house assessment for property taxation purposes.

Here is a slide presentation by MPAC that discusses solar on the last 2 slides:

http://www.obiaa.com/UploadedFiles/MP%205%20-%20Municipal%20Property%20Assessment%20Corporation%20-%20MPAC.pdf


http://news.ontario.ca/mof/en/2012/01/fact-sheet.html




Some general information about Ontario property tax on solar:

http://switchkingston.ca/wiki/doku.php?id=microFIT:property_tax




An excellent fact sheet on tax, depreciation, property tax and HST from Sustainable Ottawa Community Energy Co-operative:

http://www.sustainableottawa.ca/wp-content/uploads/2010/12/Fact-sheet-3-MicroFIT_TaxImplications_2010-11-03.pdf