can be listed as an expense on a tax return for a given reporting period under the applicable tax laws, used to reduce the amount of taxable income reported by a business. Depreciation is the gradual charging to expense of a fixed asset’s cost over its useful life.
Accounts for the true value of a purchased asset.
You need taxable income to take advantage of this, i.e. a municipality can’t use it.
Aligns the perishable nature of an energy asset with your tax basis.