Tax
Government Solar Energy Incentive
Recording a tax credit or cash grant received for installing renewable energy systems.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Tax Receivable | Asset (+) | 5,000.00 | - |
| Deferred Grant Income (or Asset Reduction) | Liability/Asset (-) | - | 5,000.00 |
💡 Accountant's Note
Under IAS 20, government grants for assets are either recorded as deferred income or used to reduce the carrying amount of the asset (Solar Panels).
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