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Update MACRS Bonus Depreciation to 60pct #564

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merged 5 commits into from
Feb 29, 2024
Merged

Update MACRS Bonus Depreciation to 60pct #564

merged 5 commits into from
Feb 29, 2024

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adfarth
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@adfarth adfarth commented Feb 8, 2024

Please check if the PR fulfills these requirements

  • CHANGELOG.md is updated
  • Tests for the changes have been added (for bug fixes / features)
  • Docs have been added / updated (for bug fixes / features)

Changed

  • Changed macrs_bonus_fraction to from 0.80 to 0.60 (60%) for CHP, ElectricStorage, ColdThermalStorage, HotThermalStorage GHP, PV, Wind

Per Tax Cuts and Jobs Act of 2017: https://programs.dsireusa.org/system/program/detail/676

Should align with NREL/REopt.jl#350

@adfarth adfarth changed the title Update models.py Update MACRS Bonus Depreciation to 60pct Feb 8, 2024
@@ -5349,7 +5349,7 @@ class SIZE_CLASS_LIST(models.IntegerChoices):
)

macrs_bonus_fraction = models.FloatField(
default=1.0,
default=0.0,
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Really should be zero for generator?

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Doug has previously shared that the applicability of MACRS to generators is quite complicated: “depending on whether the generator is treated as attached to the building, whether it is eligible for a section 179 deduction, as well as whether it is >500kW. In practice, this makes for a range from 1 year to 40 years (!).” I think we could do something more sophisticated in the future, but should not assume 100% for now

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Ok, I'm fine to change it to zero, or make it consistent with the other techs at 0.6. I'll let you decide.

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Doug and Dan have agreed with 0% so I feel good about that!

@adfarth adfarth merged commit d95d9b8 into develop Feb 29, 2024
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@adfarth adfarth deleted the update-macrs branch February 29, 2024 14:29
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2 participants