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Post install requirements to qualify for Fed & State tax incentives?

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  • Post install requirements to qualify for Fed & State tax incentives?

    I live in South Carolina. I just completed installing a 16 panel grid-tie system as a weekend warrior project.
    I followed all guidelines, permitting process of my county, rough-in inspection & final inspection. Engineering plans were provided by panel manufacturer.
    My utility company was helpful. They disconnected the mains power at the property line so I could complete supply side taps.
    Surprisingly all went smoothly and the system is now on-line.

    Here is my question: Now that the system is up and running what documentation, besides Form 5695, do the Fed & State agencies require? I have all receipts for the cost of the system, hardware & misc expenses?

    I served as my own contractor for the entire system. I did hire some occasional labor for lifting and placing panels and I have accounted for that in my expenses.

    After my final inspection was complete the original permit documents were re-claimed by the inspector for filing. They did not provide any formal document that acknowledges the system exists, is installed or is operational.

    Are the taxing authorities going to surprise me with some need for a document or proof of completion?
    If they don't ask for any special documentation then what prevents people from filing false incentive claims or filing claims on systems that are not online yet?
    I would imagine there must be some method of verifying systems. I don't want any last minute surprises.

    Thanks for any advice.
    Last edited by generatorlabs; 12-06-2016, 09:50 PM.

  • #2
    Originally posted by generatorlabs View Post
    Are the taxing authorities going to surprise me with some need for a document or proof of completion?
    If they don't ask for any special documentation then what prevents people from filing false incentive claims or filing claims on systems that are not online yet?
    The only thing you need to file is 5695.

    IF audited you'd need some proof that it was up and running ("placed in service") between Jan 1 and Dec. 31 of this year.
    All the building departments that I have dealt with have records showing when a building permit was filed and when it had it's final inspection that it passed.
    Your building department may even have those records online that you can print that out and put it in your filing cabinet with your other tax docs.

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    • #3
      Originally posted by generatorlabs View Post
      If they don't ask for any special documentation then what prevents people from filing false incentive claims or filing claims on systems that are not online yet?
      I would imagine there must be some method of verifying systems. I don't want any last minute surprises.
      Like most tax things the documentation sent to the IRS at the time of filing is much smaller than what you would need if you were audited.

      It is definitely possible to cheat (in this way and many other different ways) on taxes - but most people will be honest. And hopefully those that aren't will be caught by an audit.

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      • #4
        Originally posted by foo1bar View Post
        The only thing you need to file is 5695.
        I decided to call the enforcement office just to see if they offered a copy of the Work Permit that I could keep in my files.
        They did not offer a copy but instead sent me, at no cost, a PDF summary of Work Permit tasks which showed dates and the name of the inspector who performed them.
        The description states the intent of the Work Permit so I guess I could always produce this document if the question were to come up some day.

        Thanks!
        Last edited by generatorlabs; 12-08-2016, 01:00 PM.

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