Your Inputs
Battery asset purchase
$1,000,000
Federal marginal rate
37%
State marginal rate
5%
§48E ITC rate
30%
Material participation in the asset?
If off, §469 caps benefit at your passive income.
Net after-tax cost of asset
$343,000
You own a $1M asset · You paid $0.34 on the dollar after tax.
Year-0 Tax Benefit
$657,000
ITC + deduction value
Per $1 Deployed
65.7¢
preserved as tax
Year-0 Math, Step by Step
| Calculation | Amount |
|---|---|
| Asset purchase | $1,000,000 |
| §48E ITC rate | 30% |
| ITC dollar (rate × asset) | $300,000 |
| §50(c)(3) basis reduction (50% × ITC) | ($150,000) |
| Depreciable basis | $850,000 |
| §168(k) 100% bonus depreciation deduction | $850,000 |
| Blended marginal rate (federal + state) | 42% |
| Deduction value (basis × blended rate) | $357,000 |
| Year-0 tax benefit (ITC + deduction value) | $657,000 |
| Net after-tax cost (asset − Year-0 benefit) | $343,000 |
Sources: IRC §48E (Clean Electricity ITC) · IRC §168(k) (Bonus Depreciation, 100% restored by OBBBA for property placed in service after 1/19/2025) · IRC §50(c)(3) (Basis Reduction) · IRC §39 (General Business Credit carry).
Year-by-Year Tax Absorption
Enter your actual prior-year and projected liability. The table applies the §48E ITC against Year 0 first; excess carries back 1 year under §39, then forward up to 20 years. The §168(k) deduction reduces Year-0 ordinary income; any resulting NOL carries forward under §172.
| Year | Pre-product Liability | ITC Applied | Deduction Applied | Post-product Liability | Cumulative Saved |
|---|
Tax Liability Absorbed Across the Window
Bars: pre-product liability (muted) vs. post-product liability (copper). Total preserved is the gap.
Assumption Stack (always visible)
Asset
$1,000,000
ITC Rate
30%
Federal Rate
37%
State Rate
5%
Blended Rate
42%
Depreciable Basis
$850,000
Bonus Dep %
100%
Material Part.
Yes
Reserve your allocation.
Next step: a 30-minute qualification call. Minimum allocation $250,000. Tax-year deadlines apply.
Important Disclosures
- Joint offering. Members and principals of Founders First Advisory may have material interests in the offering.
- Not tax advice. This calculator is illustrative only. Tax outcomes depend on your individual facts. Consult your CPA or tax attorney before relying on any figure shown.
- Not an offer. This is not an offer to sell, or a solicitation of an offer to buy, any security. Any actual offering is made only through definitive subscription documents.
- Code basis. Calculator math reflects IRC §48E, §168(k) as restored by OBBBA, §50(c)(3) basis reduction, and §39 general business credit carry (1 yr back / 20 yr forward). It does NOT assume a multi-year retroactive lookback beyond §39's 1-year carryback — any such claim requires its own written legal opinion.
- §469 passive activity. Without material participation, credits and depreciation from the asset are passive and offset only passive income. The toggle above caps benefit accordingly.
- §50(a) recapture. Disposing of the asset within 5 years triggers ITC recapture.
- Bonus depreciation eligibility. 100% rate applies only to qualified property acquired AND placed in service after January 19, 2025.
- Accredited only. Available only to verified accredited investors under SEC Rule 501(a). Offering exemption: Reg D 506(c).