Question about the solar tax credits

[ericfx1984]

But, you can only do it once per residence. As in, if I decide to double my system, I can't get a credit for it if I already claimed it last year.

Technically speaking these are two separate residences... I established my residence on the first lot I purchased and installed a solar array... We've actually been living in the RV for 2 and 1/2 almost 3 years... In this municipality a RV qualifies as a residence

Then I purchased the two lots north of me and started building a house on one of those lots

The new system will be used on the new house build

Technically speaking even though I'm using the solar panels currently they're not installed on the RV they're actually installed on a shed and will eventually be tied in to the house

 

[Zwy]

But, you can only do it once per residence. As in, if I decide to double my system, I can't get a credit for it if I already claimed it last year.

You can do that but I'm taking the credit for any additions........

If you expand a system, the expansion is eligible for the credit.

Residential Clean Energy Credit | Internal Revenue Service

If you invest in renewable energy for your home such as solar, wind, geothermal, biomass, fuel cells or battery storage, you may qualify for a tax credit.

www.irs.gov

"The credit has no annual or lifetime dollar limit except for credit limits for fuel cell property. You can claim the annual credit every year that you install eligible property until the credit begins to phase out in 2033."

 

[Tulex]

You can do that but I'm taking the credit for any additions........

If you expand a system, the expansion is eligible for the credit.

Residential Clean Energy Credit | Internal Revenue Service

If you invest in renewable energy for your home such as solar, wind, geothermal, biomass, fuel cells or battery storage, you may qualify for a tax credit.

www.irs.gov

"The credit has no annual or lifetime dollar limit except for credit limits for fuel cell property. You can claim the annual credit every year that you install eligible property until the credit begins to phase out in 2033."

I get what you guys are saying, but my accountant and multiple sites say differently. I hope you are right, as I will be adding to my system, would love to get the credit.

 

[Zwy]

I get what you guys are saying, but my accountant and multiple sites say differently. I hope you are right, as I will be adding to my system, would love to get the credit.

The quote is right from the IRS website. "You can claim the annual credit every year that you install eligible property until the credit begins to phase out in 2033."

 

[Zwy]

I get what you guys are saying, but my accountant and multiple sites say differently. I hope you are right, as I will be adding to my system, would love to get the credit.

My next system will be fully written off, it is for a business. I get a nice depreciation expense for a few years. Not taking the tax credit, just depreciating it all out.

 

[millsan1]

Yes, you claim in when you put into service.

I kept a spreadsheet of purchases, labor, parts, etc.

My accountant asked for the interconnect agreement from the utility, and he was good with it.

That being said, I do not believe they require anything to file, but you would want to have this stuff in place if questions were asked.

 

[Ampster]

No I'm not planning to do anything I'm not supposed to... What I am trying to do is Make sure that if I am ever audited I have my butt covered

A copy of your electric bill for the month that you first showed export would be a simple way to document installation.

 

[ericfx1984]

A copy of your electric bill for the month that you first showed export would be a simple way to document installation.

No electric bill... No electric pole... No electric...

 

[Hedges]

... no problem.

The new system will be used on the new house build

Which you will make your principle residence.

(maybe after requisite aging period, you can use that home as a rental, and begin depreciating property converted from personal to business use.)

I get what you guys are saying, but my accountant and multiple sites say differently. I hope you are right, as I will be adding to my system, would love to get the credit.

I never do understand "authoritative" sources which deny what is written in black and white by the IRS.
Although, it would be text of the law which is ultimately controlling, regardless of opinions and guides authored by the IRS. With enough money and lawyers on whichever side cares to establish legal precedence.

 

[Tulex]

After doing some more reading, I agree that you all are right. I think the confusion comes from the phrase "Can only be used once".

Read the actual question on a tax site, they clearly spelled it out that you can.

 

[green mountain boys]

My panels are vertically mounted to the wall of my shop. Never seen from the aliens orbiting the earth LOL

What if the aliens use "street view"?

 

[ericfx1984]

Here's a thought... Let's say that I sell an inverter to somebody that has never been put into use... Can they then claim the tax credit?

 

[Bluedog225]

I read somewhere that has to be first time installed. You can’t buy used stuff and reinstall it and claim the credit again.

 

[Tulex]

I read somewhere that has to be first time installed. You can’t buy used stuff and reinstall it and claim the credit again.

I agree, but don't know how being unused would play into it.

 

[Danke]

Which you will make your principle residence.

Can’t remember where I read it, but I thought you were allowed to take the credit for a second (secondary?) residence also.

 

[Bluedog225]

They had to draw the line somewhere.

 

[teal95]

I believe the "used" equipment restriction isn't quite worded like that. You can't claim equipment for which the tax rebate has already been claimed.

 

[Real007]

Cool. Don’t want to see anyone jammed up.

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Didn't a mad gunman use that tower to kill innocent people?