Tax credit for vehicle mounted system?

[ZeeSprinter]

I've been reading some and it seems that the 30% tax credit should apply to vehicle systems. Did a search here on the forum for "tax" and got no results so I figured I'd start a discussion.

Link to IRS publication: https://www.irs.gov/pub/irs-pdf/i5695.pdf

Relevant parts:
"A home is where you lived in 2018 and can include a house, houseboat, mobile home, cooperative apartment, condominium, ..."

"The home doesn't have to be your main home. "

"...and for piping or wiring to interconnect such property to the home."

I've elsewhere seen that RVs can be counted as a 2nd home as long as it has a kitchen area, sleeping area, and toilet facilities. As my user name might imply, I'm converting a Sprinter to live in for some decent stretches while traveling and installing a solar system. It seems the credit would apply and if it does how much of the system would it apply to? The panels and wiring to the charge controller seem obvious. Batteries (by far the most expensive component) and inverter are required to interconnect the equipment to the DC outlets in the RV/home. Curious to know what other people think on this.

 

[BillC]

Well, I guess I’ll find out in a couple months. I’m full time in my travel trailer and installed 800 watts solar, 300ah batteries and inverter charger. I plan on taking the credit.

 

[ZeeSprinter]

For what components? I think it's pretty clearly allowable for the panels->cables->charge controller but not sure about batteries and inverter though I definitely think a case can be made for that. I would probably draw the line just after the inverter but the expenses after that are pretty minimal anyway.

 

[BillC]

pretty much everything. I purchased most of my gear from amsolar as package except solar panels. I bought hi-tech solar 4 200 watt panels. I’m into it for about $7200.00. Plan on taking that amount as credit.

 

[Geriakt]

I am turning in my RV solar build in as a tax credit for 2019 as my second home. I also was permitted to write of the interest on the loan as a second home.

 

[ghostwriter66]

If you’re a full-time RV owner looking to add solar power to your rig, the US government IRS bulletin clearly states that you qualify for the 30% Residential Renewable Energy Tax Credit

It doesn’t matter if you’re a boondocker, stealth camper or a digital nomad. If you own an RV then you could qualify for the Residential Renewable Energy Tax Credit, giving you back up to 30% of the cost of a complete solar package, or most additions to your current solar system.

This program applies to all ‘dwelling units’ including houses, mobile homes and boats, and the current solar tax credit is valid for any RV that has been accepted by the IRS as a second home for tax purposes.

The credit has been extended to the end of 2019, but scales back then disappears by the end of 2021.

 

[Startagainsteimy]

If you’re a full-time RV owner looking to add solar power to your rig, the US government IRS bulletin clearly states that you qualify for the 30% Residential Renewable Energy Tax Credit

It doesn’t matter if you’re a boondocker, stealth camper or a digital nomad. If you own an RV then you could qualify for the Residential Renewable Energy Tax Credit, giving you back up to 30% of the cost of a complete solar package, or most additions to your current solar system.

This program applies to all ‘dwelling units’ including houses, mobile homes and boats, and the current solar tax credit is valid for any RV that has been accepted by the IRS as a second home for tax purposes.

The credit has been extended to the end of 2019, but scales back then disappears by the end of 2021.

Do you know if you have to have the vehicle registered as an RV? For those converting from a cargo van this could be an issue.

 

[ghostwriter66]

Do you know if you have to have the vehicle registered as an RV? For those converting from a cargo van this could be an issue.

I don't see why it would matter if its a van or trailer or Class A or etc .. IF you are living/staying in it for more than a day why wouldn't it qualify.. ??

 

[erik.calco]

For what components? I think it's pretty clearly allowable for the panels->cables->charge controller but not sure about batteries and inverter though I definitely think a case can be made for that. I would probably draw the line just after the inverter but the expenses after that are pretty minimal anyway.

Here is the info I collected covering batteries:

The Internal Revenue Service released a private letter ruling on March 2018 stating that a customer with an existing home solar array is eligible for a 30 percent federal tax credit when they buy and install a battery system, provided it stores only solar energy for their residence.

Section 25D(g) of the Code provides that for § 25D(a)(1) and (2), the applicable percentage shall be 30 percent in the case of property placed in service after December 31, 2016, and before January 1, 2020.

https://docs.house.gov/billsthisweek/20151214/CPRT-114-HPRT-RU00-SAHR2029-AMNT1final.pdf

https://insideclimatenews.org/news/...owner-ruling-battery-energy-storage-powerwall

https://www.irs.gov/pub/irs-pdf/f5695.pdf

 

[ZeeSprinter]

Thanks for all the replies. Just might stay at budget with my build with the tax credit factored in.

 

[Johnny Lightning]

Yep all the folks are right that you get the 30% credit for the system "placed in service" in 2019. So if it ain't up and running yet you've got 4 days to "git er done" or the credit drops to 26% in 2020, still not a bad deal. The other option is you could commit tax fraud and lie thereby subjecting yourself to 5 years in the pokey. Your call, but personally I'd make sure you at least produce a couple of watts of power this year. A residence does not have to be your "primary residence" to qualify for the credit. RVs, boat, cottages, skoolies, even well appointed caves can all be considered a residence. There's some particular rules about what counts as a "residence" but as long as you can eat, sleep and eliminate digested food there it counts as a residence. I don't play a CPA on TV, but I am one in real life. As always, free advice is usually worth what you paid for it to check with your tax advisor.

 

[Sojourner1]

In 2016 took the 30% as a fulltimer in RV. $3,400 tax credit.

 

[ZeeSprinter]

Produced some watts starting 12/22 so all good for the credit.

With the cost decreasing on a lot of the hardware I think my whole system will cost less than your credit @Sojourner1