Federal Tax Credit and Solar PV question: Any items that don't qualify?

[solarintexas]

I am adding four Mission Solar 345 W panels and four Enphase IQ7+ to my existing array to get closer to 100% consumption coverage. It'll be a fun weekend project, and I am looking forward to it!

Since this will be DIY, I wonder if all the supplies I am using will qualify for the federal tax credit. All supplies and tools are new equipment, and I have proper invoices for everything.

Here are specific questions I have regarding the following expenses:
1 .Does sales tax paid count towards the federal credit?
2. Do shipping charges count?
3. panels, inverters, racking and mounting hardware (They fully count, I would assume.)
4. crimp tool for making field connections (This is a tool, thus not part of the installation. But since it's needed, does it count?)
5. backfeed breaker in main panel (Not part of the solar array per se, but does it count as well?)


Thank you so much for your help!

[chrisski]

Only thing I will tell you is that if this is for a FIfth wheel or travel trailer, it will not count. FOr RVs, must be powered by an engine like a class A.

I’d also recommend you plan to what people tell you, but if you can get a tax preparer to sign it off, it’s official, meaning that he would have to fight it if bad advice is given. I’ve probably put some incorrect terms in that last sentence also, but the meaning is, after myself losing money on bad free advice, best to get paid advice from someone official and willing to put their signature to it.

[J.P.M.]

Only thing I will tell you is that if this is for a FIfth wheel or travel trailer, it will not count. FOr RVs, must be powered by an engine like a class A.

I’d also recommend you plan to what people tell you, but if you can get a tax preparer to sign it off, it’s official, meaning that he would have to fight it if bad advice is given. I’ve probably put some incorrect terms in that last sentence also, but the meaning is, after myself losing money on bad free advice, best to get paid advice from someone official and willing to put their signature to it.

To that end, make sure the person you get tax advice from is a C.P.A. Anyone can be a tax preparer.

[solarintexas]

This is for my main (and only) residence. I am usually just doing Turbo Tax. I will not pay for a tax preparer to save $7 on a solar installation tool. Rather, I will leave it off the list if in doubt. My guess is that most tax preparers in my area have no clue about the specifics of solar anyway. I am in an area where there aren’t many residential installations. Just curious what people commonly claim towards their solar tax credit.

[J.P.M.]

This is for my main (and only) residence. I am usually just doing Turbo Tax. I will not pay for a tax preparer to save $7 on a solar installation tool. Rather, I will leave it off the list if in doubt. My guess is that most tax preparers in my area have no clue about the specifics of solar anyway. I am in an area where there aren’t many residential installations. Just curious what people commonly claim towards their solar tax credit.

When it comes to solar tax credits, like other tax credits and most of life, fortune favors the bold - until caught (or audited).

Like most others around here, I'm not a CPA and don't play one on TV, but in general, follow IRS guidelines including no credit for used equipment material costs and no credit for DIY labor.

[chrisski]

This is for my main (and only) residence. I am usually just doing Turbo Tax. I will not pay for a tax preparer to save $7 on a solar installation tool. Rather, I will leave it off the list if in doubt. My guess is that most tax preparers in my area have no clue about the specifics of solar anyway. I am in an area where there aren’t many residential installations. Just curious what people commonly claim towards their solar tax credit.

Turbo tax can steer you wrong at some points. It’s pretty flawless for normal incomes with the standard dedications, but once you go much past that, it has its limits. Whether or not to pay a CPA to save $7 on a tool, or just not claim the $7 is pretty easy thought. There’s some smart CPAs out there, and there’s other that are not that comfortable outside their normal circle.

Thousands of people have solar installed by companies in the valley where I live, but there’s probably dozens that build some sort of system by themselves that may be eligible for a tax credit. IMO of those dozens, few, if any will go to a CPA and make sure they’re doing it correctly, the rest either take a deduction hoping they did it right, but expect no one will ever check or are intimidated by all the paperwork. My fifth wheel RV, I know is not eligible, and for my small solar generator for backup power for my house, I fall into the “too intimidated by the paperwork” category, even though I could probably put something in turbo tax for a solar instal, even pay at the end for a CPA, and just hope that its correct.

[solarintexas]

I am not afraid of paperwork. We're talking about a very small amount here, perhaps $400ish in tax credits. I just read up on various government publications and also researched tax payer inquiries with the IRS. From what I found I am fairly certain that all of the listed expenses above apply. I have all receipts and documentation to show if I were to be audited. I am aware that DIY labor doesn't count. I am only talking about supplies that are directly related to the installation of my solar PV array and that serve no other function.

J.P.M., not sure what you are trying to insinuate by "until caught". I was planning on claiming eligible expenses, not cheat the system. Not sure where I would be "caught" if I rightfully redeem a tax credit that I am entitled to by law.

Thank you all for your responses!

[J.P.M.]

I am not afraid of paperwork. We're talking about a very small amount here, perhaps $400ish in tax credits. I just read up on various government publications and also researched tax payer inquiries with the IRS. From what I found I am fairly certain that all of the listed expenses above apply. I have all receipts and documentation to show if I were to be audited. I am aware that DIY labor doesn't count. I am only talking about supplies that are directly related to the installation of my solar PV array and that serve no other function.

J.P.M., not sure what you are trying to insinuate by "until caught". I was planning on claiming eligible expenses, not cheat the system. Not sure where I would be "caught" if I rightfully redeem a tax credit that I am entitled to by law.

Thank you all for your responses!

My advice was general in nature. There are others besides you have asked similar if not identical questions as well as others who may be reading this thread.
In life and in general, fortune does favor the bold (and slaughters the foolish).

I was audited once and I took my checkbook as a reality measure. My wife at the time was, and still is, a C.P.A. In that case, boldness was helped by knowledge, proactive thinking, situational awareness and preparation.

You roll in here asking questions to semi or completely anonymous posters who most likely know less than you do about solar tax credits the answers to which are readily available on line or in the open literature, and then get snarky when your thin skin and your ego make you think general responses are all directed at you.

As I often write, take what you want of my stuff and ignore what you don't like of it.

[solarintexas]

JPM, general advice is not of much use to me, but I totally get your point. As I said, I found relevant docs that answer my questions. It’s all good. I am afraid that my ego is as big as my solar array. Nameplate rating is only 4.5kW. Room to grow, I suppose.
Seriously, I am here to read and learn from those with more experience. No snarkiness implied.

[J.P.M.]

JPM, general advice is not of much use to me, but I totally get your point. As I said, I found relevant docs that answer my questions. It’s all good. I am afraid that my ego is as big as my solar array. Nameplate rating is only 4.5kW. Room to grow, I suppose.
Seriously, I am here to read and learn from those with more experience. No snarkiness implied.

Understood.

Because I try to deal in straight talk with not much in the way of hints/suggestions/sugar coating about it, I tend to piss off most of the the snowflake set, but there's no insinuation from my end. BTW, that's a trait I polished a lot by working with/learning from Texans in the oil patch.