federal tax credit

[Cajun Bill]

In another thread, I've been gathering information regarding my use of two "free" solar panels and all the gyrations from that as I put together a small off grid system for my workshop. Yesterday, someone suggested that I explore the possibility of getting tax credits for the items I'm purchasing to create this system. I did some preliminary googling and it appears that off grid systems might qualify for federal tax credits as long as they are "in service" during the current tax year. Anyone have any input on that? I am researching he federal tax form applicable to that to see if I might qualify.

[SunEagle]

In another thread, I've been gathering information regarding my use of two "free" solar panels and all the gyrations from that as I put together a small off grid system for my workshop. Yesterday, someone suggested that I explore the possibility of getting tax credits for the items I'm purchasing to create this system. I did some preliminary googling and it appears that off grid systems might qualify for federal tax credits as long as they are "in service" during the current tax year. Anyone have any input on that? I am researching he federal tax form applicable to that to see if I might qualify.

I would suggest you talk to your CPA and make sure they are knowledgeable concerning the latest solar tax credit and what is needed to qualify.

You will certainly have to follow the NEC code for your area to the letter for the solar installation. Let us know how you make out.

[organic farmer]

When we were building our system, we bought a part of the system each year, for 3 years. At that time we were allowed to use the tax credit for each year's expenditure. It may have since changed, only allowing you to use the tx credit on the same year that you put your system "in service".

Also keep in mind that you might be able to depreciate your solar power system. The IRS allows a 7-year depreciation of solar systems. We are depreciating our solar system. Of course you should clear this by your accountant.

[J.P.M.]

When we were building our system, we bought a part of the system each year, for 3 years. At that time we were allowed to use the tax credit for each year's expenditure. It may have since changed, only allowing you to use the tx credit on the same year that you put your system "in service".

Also keep in mind that you might be able to depreciate your solar power system. The IRS allows a 7-year depreciation of solar systems. We are depreciating our solar system. Of course you should clear this by your accountant.

Keep in mind that most homeowners do not get to treat a PV system as a business expense and therefore do not usually get to depreciate it as you do.

[organic farmer]

... Keep in mind that most homeowners do not get to treat a PV system as a business expense and therefore do not usually get to depreciate it as you do.

This is my fifth home. I have never owned a home that was not some form of business activity.

Before acting of any advice from online, always verify your bookkeeping with your accountant.

[Cajun Bill]

Appears it is just a simple matter of completing Form 5695 for a 30% tax credit, but I would not be able to depreciate it since it is not a business location. That takes some of the sting out of my recent purchases. 😇