Also: new hires for Dal Poggetto, BPM; timing a business saleThe financial incentives for going solar are numerous, but not all of them may be around much longer.
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For most businesses, approximately 85 percent of solar equipment will qualify for depreciation deductions over a five-and-a-half-year period, with an option to elect during 2009 an additional 50 percent first-year bonus depreciation, according to Jason Vargelis, attorney with Carle Mackie Power & Ross LLP in Santa Rosa. Under current law, first-year bonus depreciation is not available after 2009.
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Bobbi Hoff Beehler, CPA and CFA with Pisenti & Brinker, said any possible extension of bonus depreciation is uncertain.
"With the impending expiration of bonus depreciation and the decline in the California subsidy, this may prove to be the best year to take advantage of tax credits and rebates for solar systems," she said.
Additionally, said Mr. Vargelis, there is the California Solar Initiative, which requires that regulated utility companies provide their electricity customers with either an up-front payment based on expected use (for smaller solar facilities) or periodic payments over a five-year period based on actual use (for larger solar facilities).
The incentive payment is made at one of 10 levels, he said, depending on the time of the subsidy reservation. The payment level for new reservations declines over time based on the volume of total reservations.
"The exact date of the reduction will depend on the number of new reservations. Based on current demand, the next reduction could be early next year or sooner."
"As of July 15, 2009, PG&E reports that it is currently paying at level five for residential customers, which equates to $0.22 per kwh under the performance-based incentive, and level six for non-residential customers, which equates to $0.15 per kwh," said Ms. Hoff Beehler.
"My recommendation would be if you were thinking of installing a solar system, I would strongly consider having it completed during 2009," she said.
Dal Poggetto & Company LLP has hired five Sonoma State University graduates. Jennifer Calderon, Shayne Cooper and Melissa Deakins all came on as staff accountants in the tax department, and they are all May 2009 business administration graduates. Erika Larson was also hired as a tax accountant. She was a 2006 graduate student in accounting at Sonoma State University and then worked for two years with KPMG LLP in San Francisco. Mike Frugoli was hired in the audit department. He was a 2007 business administration graduate and worked for a year with PricewaterhouseCoopers LLP in San Jose.
Dal Poggetto & Company is one of the largest accounting firms in the North Bay with 15 certified public accountants with a focus on the wine industry. Jon Dal Poggetto, the managing partner of the firm, is the author of "A Practical Guide to Winery Cost Accounting."
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Burr Pilger Mayer added two new partners. Carol O'Hara joined the firm's Santa Rosa office in the assurance group. Prior to her joining BPM she was a partner at KPMG in San Francisco for seven years, with the firm a total of 18 years.