Jump to content
ATX Community

Solar Tax Credit Question


artp

Recommended Posts

Taxpayer wants to install solar at his residence. Roof mount is not feasible on his house due to limited southern roof exposer and ground mount is not feasible due to municipal code restrictions  His only solution is to build a storge shed and do a roof mount installation. Question: Can he include the cost of constructing the shed as part of the qualifying cost for the 30% solar credit?

Link to comment
Share on other sites

Un-researched, but first blush seems like a bridge too far...   I think the portion that is related to the installation of the solar is all that you get. 

Using your above situation and changing it a bit, I want solar on my house but I need to rebuild my house to make it strong enough to meet the local codes.   Can I do a full tear down and rebuild and take the  solar credit for all the cost?   I don't think so.

Tom
Longview, TX

  • Like 2
Link to comment
Share on other sites

My "kids" needed to cut down a lot of trees to make solar work, so they postponed. One of the large storms took out a lot of their trees, so they got bids again. Now they needed even fewer solar panels than their the original estimate to make the project work for them. A couple weekends with some rented and borrowed equipment gave them wood for their fireplaces and cleaned up their yard. Their house is nice and cozy now.

Link to comment
Share on other sites

Likely already considered by the client - but with certain state regulations (net metering type rules), Southern exposure may not even be the most ideal.  For instance, in CA, with the soon implementation of our NEM3, W and/or WSW may be the most beneficial for the home owner.  It is not as simple as Southern pays, as Western can be "the" win for TOU plans.

Link to comment
Share on other sites

9 hours ago, artp said:

His only solution is to build a storge shed and do a roof mount installation.

 

You probably won't find a black and white answer in the code, but there appears to be a justification for claiming structural components. 

 

If you were to build a separate structure with the sole purpose of accommodating the panels I think you would have a strong case.

 

But if the structure served another significant purpose; then I believe it becomes a question of how much (if any) of the cost could be allocated to the installation of the panels. 

 

25D (d)(2) "(2)Qualified solar electric property expenditure.

The term “qualified solar electric property expenditure” means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer.

 

25D (e)(2)Solar panels.

No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as property described in paragraph (1) or (2) of subsection (d) solely because it constitutes a structural component of the structure on which it is installed.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...