The federal government offers a number of solar incentives, including a 30% investment tax credit (ITC) on the solar system cost. As part of the 2009 American Recovery and Reinvestment Act (ARRA), tax-paying entities can choose to take advantage of the 30% Renewable Energy Grant instead of the ITC. The renewable grant provides a cash refund rather than a tax credit. Grant checks are sent 60 days after the equipment is placed “in service”. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in commercial solar thermal and solar Photovoltaic (PV) systems through depreciation deductions over a five year period.