Questions about Residential Energy Credits before 2016

Hairfarm

Greetings,

I have a small off-grid cabin in the state of California. I do not live in the cabin full-time.

1) Can I still get a tax credit for all of my system expenses even though I'm off-grid and not living in the cabin?
2) Is the deadline 2016 to get this credit?
3) How much of a credit can I expect to get from $4500 in PV expenses?
4) Can someone please tell me where to get the correct form for my state? Is it Form 5695?

I get conflicting info about this issue. Some have said that I can't a credit because i'm off-grid, etc.

thanks!

Hairfarm

BB.

Re: Questions about Residential Energy Credits before 2016

As I understand, you can get the Federal tax credit, but not any State Credits. California rebates are funded by utility fees/taxes and only apply to Grid Tied Connected Systems.

The Federal Tax Credit applies to anything required to make the solar electric system to work (panels, batteries, charge controller, wiring, racking, etc.). For example, you can deduct the framework to hold the array, but not the walls/floors/roofing for the shed under the panels.

The Federal Tax Credit may expire at the end of 2016 or end of 2015??? (not sure). And that means (again, as I understood), if you cannot offset the tax credit against this years Tax Bill, any excess credit my "go away" next year if the credit is not used this year.

-Bill

Mountain Don

Re: Questions about Residential Energy Credits before 2016

Here's a link to the info you need....
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F

The federal tax credit is 30% of everything from the PV panels to the wires that take the AC power from the inverter to the service panel. Some states (like NM where we are) do not charge state sales tax on anything bought for renewable energy. We had forms to fill and had to educate some vendors but that saved us 7%.

Tax credit runs to 12/21/2016... placed into service by the end of 2016. I believe that unused portions will rollover to the next year. But check that out yourself.


PV tax credits work for off grid. Even as a second home. Some of the other energy related tax credits only work for principle residence. But not for rentals.

Hairfarm

Re: Questions about Residential Energy Credits before 2016

Extremely helpful Mountain Don.

My scenario is this: I've been purchasing solar components since early 2011 and have have only partially installed my PV system to date. It's really an ongoing, pert-time project.

Can I still get credit for all of the components I've purchased over the last 4 years? I've never claimed the credit before.
I hope to have the system installed by the end of February and claiming the tax credit for the tax year of 2015. Is this possible?

thanks

Photowhit

Re: Questions about Residential Energy Credits before 2016

Hairfarm wrote: »

Can I still get credit for all of the components I've purchased over the last 4 years? I've never claimed the credit before.
I hope to have the system installed by the end of February and claiming the tax credit for the tax year of 2015. Is this possible?

Tax credit applies the year you install/put to use, the components. So a generator is questionable if installed before solar, but might be claimed if part of the system. I think we have heard arguments on both sides of this, not sure if we have ever heard from someone who was audited...