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Energy Credits


Christian

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A client called to inquire about a possible energy credit on solar panels installed on their roof last year. In connection with this they also installed a generator all to the tune of some $43,000 dollars ! In researching this I can find a possible credit for the solar panels but I do not see a generator qualifying. Most generators bought here are for back up power in case the electric power fails for a time. The contractor sold them a bill of goods advising them they would get a credit of $6,000. I told them I would need to see any paperwork related to such a claim. He further advised this would eliminate their electric bills. So much for gullible folks as no such savings have materialized.  What do you think ?

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The 2020 tax credit for solar panels is 26%.  If the client paid $23,077 for solar panels, the credit would be $6000.

The generator could also have some deductions (not credits) if it is used to power medical devices.   http://alternate-power-solutions.com/3-ways-installing-a-whole-home-generator-is-tax-deductible/

There is also a deduction if the generator was used as the primary power source during a federally declared disaster.

VA also has a deduction for 20% of the sales tax paid for purchasing solar panels.

As for the savings?  A lot of purchasers of solar panels increase the use of their electricity and that wipes out any of the savings that might have occurred.

 

 

 

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Thanks so much Max. This information is great news for this lady as her husband has come down with rapid onset Alzheimers disease. She can use that $6,000 as well as that 20% state credit. I rarely have reason to compute one of these credits and basically scanned the credit until I had more time to look it over. I have printed out the needed material and will be able to help her out. I've got to send my annual donation to the website owner as this just illustrates how valuable a resource this site is. 

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