You can call me anything you like. My objective was to add clarity.
If the OP hasn't used the equipment and sells it to the next purchaser as new equipment I think there is a good chance it could be considered new. I also I think a credit of $300 for $1,000 of equipment is not likely to get audited.
However, I must thank you for making me check my information. My prior statement to this thread with respect to the placed in service date requirements for U.S. federal tax credit eligibility was [U]incorrect......
But, antecedent information is necessary: The placed in service date for solar projects must first be established. That date, according to the IRS, can be determined in one of two ways. One way is to actually start work according to IRS definitions. The second, which may be more applicable to the OP's situation, is when the person/entity intending to claim the tax credit has incurred 5% of the cost of the project, including equipment costs. Either method requires "continuous progress" toward project completion.
Specifically to my error: The June 2018 IRS ruling changes the latest allowable completion date for projects started in 2019 from 01/01/2020 TO 01/01/2024.
To be clear, the percentage of a project started after 12/31/2019 that is tax credit eligible still declines to 26 % for 2020 and declines further in following years. But projects started in 2019 according to the June 15 , 2018 IRS guidelines still qualify for the 30%, and once begun, have until 01/01/2024 to complete.
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No worries, I am glad my comment helped you add further clarification which was userful. If you didn't clarify, I was going to add the following from my experience. Apparently payment for the equipment is not the important date. For example one could argue that my system was placed in service in December 2017 when the County approved the solar part of the installation. However, because of delays with PG&E and the County, the upgrade of my service panel did not take place until last week. I have signed a completion certificate and funds will be released to the contractor next week. I expect to get my Permission to Operate in 30 days. Apparently I could have taken the Investment Tax Credit for 2017 but I didn't have that interpretation when I filed. I will take the credit for 2018 using the contract amount even though it was not paid for until 2019. In my tax file I have a copy of the County solar inspection approval, a log showing that the system generated power during 2018 and a copy of the contract showing that I was obligated for the amount. Documentation is important, especially in my case where the credit will be approximately $8,000.
Anyway, and a further point to your question, if the OP does sell excess equipment in the future, any such equipment might be considered used anyway and so ineligible for any fed. tax credit for any future buyer of such used equipment.
However, I must thank you for making me check my information. My prior statement to this thread with respect to the placed in service date requirements for U.S. federal tax credit eligibility was [U]incorrect......
But, antecedent information is necessary: The placed in service date for solar projects must first be established. That date, according to the IRS, can be determined in one of two ways. One way is to actually start work according to IRS definitions. The second, which may be more applicable to the OP's situation, is when the person/entity intending to claim the tax credit has incurred 5% of the cost of the project, including equipment costs. Either method requires "continuous progress" toward project completion.
Specifically to my error: The June 2018 IRS ruling changes the latest allowable completion date for projects started in 2019 from 01/01/2020 TO 01/01/2024.
To be clear, the percentage of a project started after 12/31/2019 that is tax credit eligible still declines to 26 % for 2020 and declines further in following years. But projects started in 2019 according to the June 15 , 2018 IRS guidelines still qualify for the 30%, and once begun, have until 01/01/2024 to complete.
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