30% Solar tax credit

plongson
plongson Solar Expert Posts: 115 ✭✭
in General Solar Power Topics #1
Has anyone been looking at the federal tax credit for 2011? I'm starting to think about tax time !@#GAG!@# and on the surface, it appears the tax credit is only for your MAIN home and does not apply to a second residence.

Any tax guru's here that know the in/out's of this tax credit? I won't be surprised if my old uncle screws me again come tax time.

This is for a new construction/second residence/off grid.

Paul
3500w solar, 800AH with Rolls Surrette, Magnum inverter, Midnite charge controller, Kubota 21kW diesel genset...private well...and just recently connected to city power for additional options...nice to have options 
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  • Grandpaclark61
    Grandpaclark61 Registered Users Posts: 5 ✭
    #2
    Re: 30% Solar tax credit

    I don't have any info, but I am interested to hear some good info from a gurus! :) Would a solar panel installer be able to help out with finding the deductions? For example, I wonder if a San Jose electrician would know about the tax deductions. I might talk to my local electrician and see if they know how to get in touch with someone that could give me more information.
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  • Photowhit
    Photowhit Solar Expert Posts: 6,006 ✭✭✭✭✭
    #3
    Re: 30% Solar tax credit

    It does cover secondary/vacation homes but NOT rental property, there's a thread here somewhere, where I reserched and found a link. I'll look through my posts or search for it later.
    Home system 4000 watt (Evergreen) array standing, with 2 Midnite Classic Lites,  Midnite E-panel, Magnum MS4024, Prosine 1800(now backup) and Exeltech 1100(former backup...lol), 660 ah 24v Forklift battery(now 10 years old). Off grid for 20 years (if I include 8 months on a bicycle).
    - Assorted other systems, pieces and to many panels in the closet to not do more projects.
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  • BB.
    BB. Super Moderators, Administrators Posts: 33,613 admin
    #4
    Re: 30% Solar tax credit

    Usually, in the US, tax breaks included two homes (not income rentals) as many congress critters have two homes (one in the DC region, and one in the home district).

    -Bill
    Near San Francisco California: 3.5kWatt Grid Tied Solar power system+small backup genset
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  • Photowhit
    Photowhit Solar Expert Posts: 6,006 ✭✭✭✭✭
    #5
    Re: 30% Solar tax credit

    I found the link, it was BillJustBill's link;

    http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
    Home system 4000 watt (Evergreen) array standing, with 2 Midnite Classic Lites,  Midnite E-panel, Magnum MS4024, Prosine 1800(now backup) and Exeltech 1100(former backup...lol), 660 ah 24v Forklift battery(now 10 years old). Off grid for 20 years (if I include 8 months on a bicycle).
    - Assorted other systems, pieces and to many panels in the closet to not do more projects.
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  • Volvo Farmer
    Volvo Farmer Solar Expert Posts: 209 ✭✭✭✭✭
    #6
    Re: 30% Solar tax credit

    What about commercial buildings? I had it stuck in my mind that the 30% also applies to PVs on commercial buildings.

    I'm scanning form 3648 but haven't spotted anything yet.
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  • mike95490
    mike95490 Solar Expert Posts: 9,583 ✭✭✭✭✭
    #7
    Re: 30% Solar tax credit

    Tax Credit:
    10% of cost up to $500 or a specific amount from $50 - $300
    Expires:
    December 31, 2011
    Details:
    Must be an existing home & your principal residence. New construction and rentals do not qualify.


    I'm not sure how you get
    "It does cover secondary/vacation homes but NOT rental property"

    from this :

    "The tax credit for energy efficiency is available for improvements made to a home that you own and use as your "principal residence." This is the home where you live most of the time"

    The law (Section 25C(c)(1)(A)) specifies: such component is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence
    Powerfab top of pole PV mount | Listeroid 6/1 w/st5 gen head | XW6048 inverter/chgr | Iota 48V/15A charger | Morningstar 60A MPPT | 48V, 800A NiFe Battery (in series)| 15, Evergreen 205w "12V" PV array on pole | Midnight ePanel | Grundfos 10 SO5-9 with 3 wire Franklin Electric motor (1/2hp 240V 1ph ) on a timer for 3 hr noontime run - Runs off PV ||
    || Midnight Classic 200 | 10, Evergreen 200w in a 160VOC array ||
    || VEC1093 12V Charger | Maha C401 aa/aaa Charger | SureSine | Sunsaver MPPT 15A

    solar: http://tinyurl.com/LMR-Solar
    gen: http://tinyurl.com/LMR-Lister ,

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  • plongson
    plongson Solar Expert Posts: 115 ✭✭
    #8
    Re: 30% Solar tax credit

    Figures, I'm never on the right side of a tax break.
    3500w solar, 800AH with Rolls Surrette, Magnum inverter, Midnite charge controller, Kubota 21kW diesel genset...private well...and just recently connected to city power for additional options...nice to have options 
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  • Blackcherry04
    Blackcherry04 Solar Expert Posts: 2,490 ✭✭✭
    #9
    Re: 30% Solar tax credit

    Don't confuse the Energy Star Credit's with Solar Residence Credits. These are two totally different animals.

    It can be a total new system or a upgrade to a existing system

    Solar-electric systems placed in service after 12/31/2008: no maximum, expires 12/31/2016

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


    From Part II

    Qualified solar electric property costs. Qualified solar electric
    property costs are costs for property that uses solar energy to
    generate electricity for use in your home located in the United
    States. No costs relating to a solar panel or other property installed
    as a roof (or portion thereof) will fail to qualify solely because the
    property constitutes a structural component of the structure on
    which it is installed. The home does not have to be your main home.

    My CPA has told me he thinks that any expense you have until 2016 will qualify. New Batteries , inverters , panels, etc would qualify. Like a new service entrance. Any expense associated with the system. He said wait till the of 2015 and get all you need or do it whenever. it's just a opinion, but I never had a problem with his advise, that's why he makes the big bucks.

    There is also some expanded Language , that includes Mobile homes and Houseboats. It all depends what word " Home" means. It would seem if a motor home is you residence, it would qualify, maybe even a dumpster.
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  • Photowhit
    Photowhit Solar Expert Posts: 6,006 ✭✭✭✭✭
    #10
    Re: 30% Solar tax credit

    If you'll read the second section which covers small solor photovoltaics, it clearly states what I said. I provided a link, you must learn to scroll and read...
    mike90045 wrote: »
    Tax Credit:
    I'm not sure how you get

    from this :

    "The tax credit for energy efficiency is available for improvements made to a home that you own and use as your "principal residence." This is the home where you live most of the time"

    The law (Section 25C(c)(1)(A)) specifies: such component is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence
    Home system 4000 watt (Evergreen) array standing, with 2 Midnite Classic Lites,  Midnite E-panel, Magnum MS4024, Prosine 1800(now backup) and Exeltech 1100(former backup...lol), 660 ah 24v Forklift battery(now 10 years old). Off grid for 20 years (if I include 8 months on a bicycle).
    - Assorted other systems, pieces and to many panels in the closet to not do more projects.
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  • solarvic
    solarvic Solar Expert Posts: 1,071 ✭✭✭✭
    #11
    Re: 30% Solar tax credit

    I did get an email from another solar dealer ( Wholesale Solar) about backup system system addons. They said if you already are grid connected that you can add on a backuup offgrid system and take the 30& tax exemption. Since I cashed in my 401-k plan this probably will cover the irs tax I would have had to pay. I have bought a charge controler, inverter racks, battery and solar racks and other related items. Does this sound right? :Dsolarvic:D
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  • mike95490
    mike95490 Solar Expert Posts: 9,583 ✭✭✭✭✭
    #12
    Re: 30% Solar tax credit
    Photowhit wrote: »
    If you'll read the second section which covers small solor photovoltaics, it clearly states what I said. I provided a link, you must learn to scroll and read...


    Ah, I see, there are many sections there, with varied %'s, $ caps, and gear classifications. I'd just assumed it was one long listing. Thanks for pointing it out.

    3/4 down:
    Tax Credit: 30% of cost with no upper limit
    Expires: December 31, 2016
    Details: Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
    Powerfab top of pole PV mount | Listeroid 6/1 w/st5 gen head | XW6048 inverter/chgr | Iota 48V/15A charger | Morningstar 60A MPPT | 48V, 800A NiFe Battery (in series)| 15, Evergreen 205w "12V" PV array on pole | Midnight ePanel | Grundfos 10 SO5-9 with 3 wire Franklin Electric motor (1/2hp 240V 1ph ) on a timer for 3 hr noontime run - Runs off PV ||
    || Midnight Classic 200 | 10, Evergreen 200w in a 160VOC array ||
    || VEC1093 12V Charger | Maha C401 aa/aaa Charger | SureSine | Sunsaver MPPT 15A

    solar: http://tinyurl.com/LMR-Solar
    gen: http://tinyurl.com/LMR-Lister ,

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  • sub3marathonman
    sub3marathonman Solar Expert Posts: 300 ✭✭✭
    #13
    Re: 30% Solar tax credit
    Blackcherry04 wrote: »
    Don't confuse the Energy Star Credit's with Solar Residence Credits. These are two totally different animals.

    It can be a total new system or a upgrade to a existing system

    Solar-electric systems placed in service after 12/31/2008: no maximum, expires 12/31/2016

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


    From Part II

    Qualified solar electric property costs. Qualified solar electric
    property costs are costs for property that uses solar energy to
    generate electricity for use in your home located in the Unitedu
    States. No costs relating to a solar panel or other property installed
    as a roof (or portion thereof) will fail to qualify solely because the
    property constitutes a structural component of the structure on
    which it is installed. The home does not have to be your main home.

    My CPA has told me he thinks that any expense you have until 2016 will qualify. New Batteries , inverters , panels, etc would qualify. Like a new service entrance. Any expense associated with the system. He said wait till the of 2015 and get all you need or do it whenever. it's just a opinion, but I never had a problem with his advise, that's why he makes the big bucks.

    There is also some expanded Language , that includes Mobile homes and Houseboats. It all depends what word " Home" means. It would seem if a motor home is you residence, it would qualify, maybe even a dumpster.

    The one section I would research a bit further is the 2016 deadline. I agree that any solar expenses would qualify, BUT, I'm not sure about carrying any unused portion of the credit past tax year 2015. So if you put your $30,000 system in on 12/31/2015, you would qualify for the $9000 credit, but if your tax bill was less than $9000 you might lose out on some of the credit. Remember, might. I'm not a big bucks CPA tax attorney, so of course you should consult your own tax attorney.
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  • Blackcherry04
    Blackcherry04 Solar Expert Posts: 2,490 ✭✭✭
    #14
    Re: 30% Solar tax credit
    sub3marathonman wrote: »
    The one section I would research a bit further is the 2016 deadline. I agree that any solar expenses would qualify, BUT, I'm not sure about carrying any unused portion of the credit past tax year 2015. So if you put your $30,000 system in on 12/31/2015, you would qualify for the $9000 credit, but if your tax bill was less than $9000 you might lose out on some of the credit. Remember, might. I'm not a big bucks CPA tax attorney, so of course you should consult your own tax attorney.
    I totally agree with you. I think it all expires on 12/31/2015 and that would the include the ability to carry credit forward past that date. It is a good point to make for someone planning, I am self employed and always owe in my case.

    A little tip, I used my 30% tax credit to pay the tax on a Traditional IRA and convert it to a Roth IRA. It was a way to pay it without much pain and taking cash from somewhere else. That would be a way to use up some tax credit if you thought you were going to leave something on the table.
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  • SCharles
    SCharles Solar Expert Posts: 123 ✭✭
    #15
    Re: 30% Solar tax credit

    This is why I have been doing everything I possibly could afford to do this year. So the extra credit can be carried forward and not get too near the 2016 end of the deal. I was told by a CPA buddy that the way it stands today, you'll be able to carry forward anything bought before 1-31-16. But as has been pointed out in others posts here on the forum, there is no guarantee that Congress will leave this alone and it could happen that the whole thing is altered or done away with somehow before 2016. Just in case, I am doing it all right now and avoid any possible screwing-with that Congress might be drooling over.
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