qualifying vendor solar financing proposal

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Cash Flow Analysis Solar Pro Lease ~ compared to ~ Conventional Finance 1 Input: Cost of Equipment Solution 500,000.00 $ Assumed Tax Bracket 35% Today’s bank rate for equipment 5.00% Lease Factor - Provided by Vendor 0.005965 Tax/True Lease with a residual of 20% 20% 100,000.00 $ Length of agreement in months 84 Down payment required by the bank as a percent 20% Depreciation Expense SL, 5 Years Salvage Value 100,000.00 $ Cost Calculation: Pro Lease Loan Cost of Equipment Solution 500,000.00 $ 500,000.00 $ Bank Loan Down Payment 100,000.00 $ Net Financed Amount; subtract line 2 from line 1: 500,000.00 $ 400,000.00 $ Payment (2,982.50) $ (5,653.56) $ Interest Cost (74,899.34) $ Sum, Stream of Payments (250,530.00) $ (474,899.34) $ Total Cost Before Tax Reductions 350,530.00 $ 574,899.34 $ Cost Reductions: Investment Tax Credit (if owner can qualify) 150,000.00 $ 1 Depreciation Basis Reduction if ITC is taken 75,000.00 $ 2 Tax benefit: Business Expense Deduction - Interest 26,214.77 $ Tax benefit: Business Expense Deduction - Residual 35,000.00 $ Tax benefit: Business Expense Deduction - Tax/True Lease 87,685.50 $ 148,750.00 $ 1 Net Cost 227,844.50 $ 249,934.57 $ Difference in Net Cost (22,090.07) $ 1 Seek advice from your accountant or tax advisor. Qualifying solar energy equipment is eligible for a cost recovery period of five years. For equipment on which an Investment Tax Credit (ITC) or a 1603 Treasury Program grant is claimed, the owner must reduce the project’s depreciable basis by one-half the value of the ITC. This means the owner is able to deduct 85 percent of his or her tax basis. 2 Seek advice from your accountant or tax advisor regarding the parameters for which depreciation is available under a MACRS schedule or similar depreciation provision. The depreciation allowances noted here cannot be relied upon to be available in all instances. Prepared For: Any Company that can Qualify Prepared by: Curtis Funding Group 20 Division Street Coldwater , MI 49007 Contact: David Gaddis 248-773-7580 [email protected] 8/12/2014, 8:36 AM

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We've posted an example of what one of our ProLease Solar Finance Solutions looks like from a vendor's perspective. It's easy, straight-forward, effective and...a no brainer.

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Page 1: Qualifying Vendor Solar Financing Proposal

Cash Flow Analysis

Solar Pro Lease ~ compared to ~

Conventional Finance

1

Input:Cost of Equipment Solution 500,000.00$

Assumed Tax Bracket 35%

Today’s bank rate for equipment 5.00%

Lease Factor - Provided by Vendor 0.005965

Tax/True Lease with a residual of 20% 20% 100,000.00$ Length of agreement in months 84

Down payment required by the bank as a percent 20%

Depreciation Expense SL, 5 Years

Salvage Value 100,000.00$

Cost Calculation: Pro Lease LoanCost of Equipment Solution 500,000.00$ 500,000.00$

Bank Loan Down Payment 100,000.00$

Net Financed Amount; subtract line 2 from line 1: 500,000.00$ 400,000.00$

Payment (2,982.50)$ (5,653.56)$

Interest Cost (74,899.34)$

Sum, Stream of Payments (250,530.00)$ (474,899.34)$

Total Cost Before Tax Reductions 350,530.00$ 574,899.34$

Cost Reductions:Investment Tax Credit (if owner can qualify) 150,000.00$ 1

Depreciation Basis Reduction if ITC is taken 75,000.00$ 2

Tax benefit: Business Expense Deduction - Interest 26,214.77$

Tax benefit: Business Expense Deduction - Residual 35,000.00$

Tax benefit: Business Expense Deduction - Tax/True Lease 87,685.50$ 148,750.00$ 1

Net Cost 227,844.50$ 249,934.57$

Difference in Net Cost (22,090.07)$

1 Seek advice from your accountant or tax advisor. Qualifying solar energy equipment is eligible

for a cost recovery period of five years. For equipment on which an Investment Tax Credit

(ITC) or a 1603 Treasury Program grant is claimed, the owner must reduce the project’s

depreciable basis by one-half the value of the ITC. This means the owner is able to deduct 85

percent of his or her tax basis.

2 Seek advice from your accountant or tax advisor regarding the parameters for which

depreciation is available under a MACRS schedule or similar depreciation provision. The

depreciation allowances noted here cannot be relied upon to be available in all instances.

Prepared For: Any Company that can Qualify

Prepared by:

Curtis Funding Group

20 Division Street

Coldwater , MI 49007

Contact: David Gaddis

248-773-7580

[email protected]

8/12/2014, 8:36 AM

Page 2: Qualifying Vendor Solar Financing Proposal

Cash Flow Analysis

Solar Pro Lease ~ compared to ~

Conventional Finance

2

Prepared For: Any Company that can Qualify

CASH FLOW ANALYSIS

Cost 350,530.00$ 500,000.00$

Interest Expense 74,899.34$

Tax benefit of Depreciation (35,000.00)$ (148,750.00)$

Tax benefit of Interest Expense (26,214.77)$

Tax benefit of Lease Payments (87,685.50)$

Investment Tax Credit (150,000.00)$

Net Cost 227,844.50$ 249,934.57$

Cash Flow

Payments (250,530.00)$ (474,899.34)$

Residual ~/~ Down Payment (100,000.00)$ (100,000.00)$

ITC (Investment Tax Credit) 150,000.00$

Tax benefit of Depreciation 35,000.00$ 148,750.00$

Tax benefit of Interest Expense 26,214.77$

Tax benefit of Lease Payments 87,685.50$

(227,844.50)$ (249,934.57)$ Cash flow year 1

Down Payment (100,000.00)$

Payments (35,790.00)$ (67,842.76)$

ITC 150,000.00$

Tax benefit of Depreciation 29,750.00$

Tax benefit of Interest Expense 3,744.97$

Tax benefit of Lease Payments 12,526.50$

(23,263.50)$ 15,652.20$ Cash flow year 2

Payments (35,790.00)$ (67,842.76)$

Tax benefit of Depreciation 29,750.00$

Tax benefit of Interest Expense 3,744.97$

Tax benefit of Lease Payments 12,526.50$

(23,263.50)$ (34,347.80)$ Cash flow year 3

Payments (35,790.00)$ (67,842.76)$

Tax benefit of Depreciation 29,750.00$

Tax benefit of Interest Expense 3,744.97$

Tax benefit of Lease Payments 12,526.50$

(23,263.50)$ (34,347.80)$ Cash flow year 4

Payments (35,790.00)$ (67,842.76)$

Tax benefit of Depreciation 29,750.00$

Tax benefit of Interest Expense 3,744.97$

Tax benefit of Lease Payments 12,526.50$

(23,263.50)$ (34,347.80)$

Prepared by:

Curtis Funding Group

20 Division Street

Coldwater , MI 49007

Contact: David Gaddis

248-773-7580

[email protected]

8/12/2014, 8:36 AM

Page 3: Qualifying Vendor Solar Financing Proposal

Cash Flow Analysis

Solar Pro Lease ~ compared to ~

Conventional Finance

3

Prepared For: Any Company that can Qualify

Cash flow year 5

Payments (35,790.00)$ (67,842.76)$

Tax benefit of Depreciation 29,750.00$

Tax benefit of Interest Expense 3,744.97$

Tax benefit of Lease Payments 12,526.50$

(23,263.50)$ (34,347.80)$ Cash flow year 6

Payments (35,790.00)$ (67,842.76)$

Tax benefit of Depreciation -$

Tax benefit of Interest Expense 3,744.97$

Tax benefit of Lease Payments 12,526.50$

(23,263.50)$ (64,097.80)$ Cash flow year 7

Payments (35,790.00)$ (67,842.76)$

Residual (100,000.00)$

Tax benefit of Depreciation -$

Tax benefit of Interest Expense 3,744.97$

Tax benefit of Lease Payments 12,526.50$

(123,263.50)$ (64,097.80)$ Cash flow year 8 - 12

Tax benefit of Depreciation for Residual 35,000.00$

Total (227,844.50)$ (249,934.57)$

Prepared by:

Curtis Funding Group

20 Division Street

Coldwater , MI 49007

Contact: David Gaddis

248-773-7580

[email protected]

8/12/2014, 8:36 AM