qualifying vendor solar financing proposal
DESCRIPTION
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.TRANSCRIPT
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
8/12/2014, 8:36 AM
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
8/12/2014, 8:36 AM
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
8/12/2014, 8:36 AM