Federal tax credit?

[paul65k]

I could've swore there was more to this thread as I replied earlier today talking about the five consideration factors for placed In service. Was there a system reset since my post history doesn't show it either?

It's called Solar Panel Talk's Idea of moderation......when certain moderators disagree with other peoples opinions they just delete.........it's a bit of a game trying to remember what WAS there but the good news is that this is a way to help improve your memory.............read this one fast cuz it will probably be gone soon as well

I am actually a moderator on a couple of different forums and while moderation CAN be an important tool, over moderation is a sure fire way of throwing a forum's credibility down the drain......especially when it is justified in someone's mind when it disagrees with their own personal beliefs.......on a scale of 1-10 10 being the worst, I give this forum a 6.....not too far past center but certain moderators have gusts to 8 from time to time

[cebury]

I could've swore there was more to this thread as I replied earlier today talking about the five consideration factors for placed In service. Was there a system reset since my post history doesn't show it either?

[ulrich]

Thank you for your well written response. That is the same as we are being told. We do have a CPA and he is checking into the details as well.

If you want to do more research, Google "irs placed in service energy credit" - among other results, you'll see published cases where the IRS rendered opinions on whether various projects should be considered "placed in service". There is apparently a process through which one can request a ruling. See, for example: http://www.cohnreznick.com/renewable...date-wind-farm

I couldn't find a ruling for a solar project that seemed applicable to your situation, but I imagine the definition for "placed in service" is likely consistent enough that you may find some guidance in rulings on other types of renewable energy projects.

For me, this is enough of a borderline case that I would wait for your CPA's input before making any decisions.

[ndabunka]

FWIW, most probably nothing, two installers told me it has to pass inspection to be considered placed in service, not turned on with the utility.

It is splitting hairs and right now the only one it matters to is you (and your pocketbook). But it also matters not to an IRS auditor that "that guy on the internet told me someone told him".

The irs still has not clarified whether unclaimed portions of the deduction can rollover to following years even if placed in service prior to 2016. The vagueness is unfair, but it is the inefficiency of written communication that will never cover all the ifs, ands and buts. And because they're the irs and they don't have to.

Thank you for your well written response.

[cebury]

FWIW, most probably nothing, two installers told me it has to pass inspection to be considered placed in service, not turned on with the utility.

It is splitting hairs and right now the only one it matters to is you (and your pocketbook). But it also matters not to an IRS auditor that "that guy on the internet told me someone told him".

The irs still has not clarified whether unclaimed portions of the deduction can rollover to following years even if placed in service prior to 2016. The vagueness is unfair, but it is the inefficiency of written communication that will never cover all the ifs, ands and buts. And because they're the irs and they don't have to.

[ulrich]

I am waiting on him to let me know his understanding but my "A-Type" personality doesn't like to wait on others thus my inquiry. Appreciate your comment. It would be interesting to hear others as well.

I guess the KEY point here is that the IRS rules don't actually say "Operational". The say "placed in service". There IS a difference. Even your point says "interconnect APPROVAL". Not interconnect COMPLETED. If interconnect has been "APPROVED" but the connection team can't get to the property due to all the other connections they have backlogged then... It may well be possible to get an interconnect "approval" prior to the deadline and yet not have the system energized, right?

I think you're trying to split hairs here. From what I can find in terms of references, placed in service and operational are pretty much synonymous.

For example see the following reference:

http://smartenergy.illinois.edu/pdf/Archive/seiataxmanual.pdf

Equipment is considered "placed in service" in the year it is capable of being used by
the taxpayer for its intended purpose. Four things must ordinarily have happened for
this to be true:
· The equipment must have been delivered and physical construction or
installation on site must have been completed, although contractor personnel can
still be at the site in support of startup and maintenance and completion of minor
tasks like painting and attending to punchlist items.
· The taxpayer must have taken legal title and control of the equipment.
· The taxpayer must have the licenses and permits needed to operate it.
· Pre-operational tests must have demonstrated that the equipment can serve its
intended function. (Other testing to determine whether the equipment can
operate at the design capacity and to identify and eliminate defects can occur
after the equipment is in service.)

[solarz]

What if installation and all is done (you've even PAID your installer IN FULL in 2016) but your interconnect cannot actually be ....... COMPLETED until 2017? Do you still have the ability to claim the 30% tax credit?

My understand is the system must be fully operational before the end of the year (12/31/2016). Without interconnection approval, it is not considered operation system. You can check with your tax consultant or accountant before doing so.

[inetdog]

IMHO, yes. As long as you go through the whole permit process, as required locally, including updating your interconnect agreement with POCO.

[LucMan]

I already have a 5.2 KW PV system that was installed in 2007. I would like to add another 3kw system at the same address.
Does any one know if I can get the 30% tax credit on the additional system?
Thanks