I'm a solar developer and our new solar proposal tool seems to think a solar purchase reduces taxable income, substantially reducing the net cost, and once the ITC and depreciation are applied, the cost is a bit too unbelievable. I'm going to attempt to attach the cash flow with the breakdown of how the tax benefits are being calculated. I'm not a CPA, this stuff is greek to me so I'd like to get confirmation from a pro. Thank you for your help.

Yes this is a repeat post but the format is a bit odd and required a bit of a learning curve.

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Isn't there a difference between expensing and capitalizing?

yes definitely;Management typically has some discretion in determining if the cost of an item should be capitalized to the balance sheet and depreciated to the income statement over time or if the cost of the item should be fully expensed to the income statement in the current period. In general, any expenditure that is expected to provide economic benefits for multiple accounting periods should be capitalized.When a cost is capitalized, it is reported in the balance sheet as an asset. The cost is then allocated to the income statement over multiple periods as depreciation expense for tangible assets and amortization expense for intangible assets.On the other hand, if a cost is expensed in the current period, it reduces the pre-tax income by that amount.