Announcement

Collapse
No announcement yet.

Tree removal for solar install tax deductible?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Tree removal for solar install tax deductible?

    I doubt it is but if you have a tree removed to install a solar system is that part of the process under the 30% federal tax credit?

    Answering for a friend... I told him no but would ask.

  • #2
    I'd say no. See your tax adviser.

    Comment


    • #3
      There is a site preparation clause that is clearly used for tree removal on commercial projects. There would be some reasonableness applied, considering the cost of the tree r Novak to the cost of the system. And of course you should check with your tax advisor.
      OutBack FP1 w/ CS6P-250P http://bit.ly/1Sg5VNH

      Comment


      • #4
        On a similar note, how about pigeon proofing the solar array ? Is that eligible for the 30% credit ?

        Comment


        • #5
          Originally posted by lanb View Post
          On a similar note, how about pigeon proofing the solar array ? Is that eligible for the 30% credit ?
          How do you do that? Looks like one flew over my panels this week. Bruce Roe

          Comment


          • #6
            Originally posted by lanb View Post
            On a similar note, how about pigeon proofing the solar array ? Is that eligible for the 30% credit ?
            Probably about the same as prepaying for panel cleaning. Cleaning is after all, reducing/offsetting fossil fuel use.

            Comment


            • #7
              Here is how my tax advisor put it to me - if the expense is directly related to the proper installation and permitting of the system then it is considered to be part of the cost of the system. In the case you are audited you must be able to justify that position such that it would be considered a standard industry practice. In my case we had a number of trees at the actual location and a larger number of tree close by that would cause excessive shading.

              Thus for my ground mount my tax advisor deducted all costs associated with site preparation. That included clearing a large number of trees and extensive grading into the hillside. It also included all of the erosion control such as the large number of Eco blocks and installation and final grading and seeding to meet county required erosion control measures. It helped that the invoice from the guy that did that work for me was all about solar "Solar system site preparation, Solar system site grading, Solar system site erosion control, etc. Everything on the invoice was all about solar system...". All is justifiable and documented and all work was actually for the solar system.

              Here are the IRS guidelines for costs for form 5695:

              "Costs. For purposes of both credits, costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. For purposes of the residential energy efficient property credit only, costs connected with the construction of a home are treated as being paid when your original use of the constructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that is allocable to the nonbusiness use can be used to determine either credit."

              Review the IRS instructions for form 5695 for more information.

              Summary:
              1) talk to your tax advisor.
              2) if the cost is consider an industry standard practice and part of the proper installation and permitting and paid as part of the original installation then you are on solid ground with the IRS.

              Comment


              • #8
                I am including the cost of the new electrical service to my garage in my solar system costs for tax purposes. I probably would have never replaced the panel in my garage expect for doing solar. I can't legally replace the panel without a new four wire feed from the house. My system all in before tax credits should be right around $8,000 for 6,300 watts. Heck, some installed systems of similar size are getting tax credits that are nearly as much as my entire system cost!

                I ran into issues on the state sales tax exemption for solar. Some places like Home Depot and Menards need a tax exempt number to make purchases tax exempt. I called the state and asked about how to deal with this. Their take was that only the solar components are tax exempt. They said wire, conduit, and the like to install my solar was not tax exempt. I decided not to fight it since my total sales tax bill will be about $70. If I bought a turn key system from an installer then certainly the whole thing would be sales tax exempt.

                Comment


                • #9
                  Originally posted by bcroe View Post

                  How do you do that? Looks like one flew over my panels this week. Bruce Roe
                  Ha Ha, I was talking about preventing the pigeons from roosting under the panels.

                  You could try a laser beam approach for your pigeon flying problem

                  Comment

                  Working...
                  X