30% tax credit for necessary roof modifications?

[Spuddy]

I am wanting to install some pv and flat plate collectors on my roof. Only thing is, I need to do some major roof mods to my house to make the panel placement possible. I'll have to do away with my south-facing dormers, put in a full second story, and have a nice, unobstructed roof surface to most efficiently install the panels. My question is this: has anyone made mods to their roof to allow solar to be properly situated, and then included these costs as part of the total solar installation cost to take advantage of the 30% tax credit? I checked with my CPA and he couldn't find any situations where a person has done this. Any thoughts?

[Sunking]

God I hope not.

[Naptown]

I am wanting to install some pv and flat plate collectors on my roof. Only thing is, I need to do some major roof mods to my house to make the panel placement possible. I'll have to do away with my south-facing dormers, put in a full second story, and have a nice, unobstructed roof surface to most efficiently install the panels. My question is this: has anyone made mods to their roof to allow solar to be properly situated, and then included these costs as part of the total solar installation cost to take advantage of the 30% tax credit? I checked with my CPA and he couldn't find any situations where a person has done this. Any thoughts?

To the best of my knowledge NO That would be a fraud.

[Wy_White_Wolf]

Roof modifications as you described are NOT elligable for the 30% Federal tax credit.

If your CPA was any good he would have known that as it is covered in the IRS code.

[Spuddy]

Boy, you guys can be hard on a person. This is no attempt at fraud. The government is encouraging people to buy into solar. I'd like to do that. The only viable place for me to place panels is the roof--but only after modifications are made. There is something on the IRS form that mentions that "site preparation" is covered as part of what will be included for the 30% rebate. I'm just wondering what is included as "site preparation."

Sorry for offending anyone. And my accountant is as good as any, and honest to a fault.

[TnAndy]

Probably a gray area, much of the tax code is.

You have two choices: Play it conservative, taking only the cost for the solar equipment, or do the roof mods and claim it.

Worst case, you get audited, which is the only way they will find out exactly WHAT you spent the money on as the form only requires you enter a number for the credit, and if the IRS disallows the additional expenses, you either fight it out in tax court, and/or you pay the additional tax/penalties/interest.

As Clint Eastwood says "You feeling lucky, punk ? "

[russ]

Boy, you guys can be hard on a person. This is no attempt at fraud. I'm just wondering what is included as "site preparation." And my accountant is as good as any, and honest to a fault.

1) You have a good tax accountant - that type keeps you out of trouble. The 'aggressive' type will get you burned in the long run all too often.

2) There is zero chance they will let you remodel the entire top of your house as a solar expense or 'site preparation'.

[Spuddy]

Thank you for the two most recent replies with the kinder tone. I just want to make sure I get credit for whatever is legal to do. And Russ--why do you say solar PV might not work so well in my location?

[russ]

Hi Spuddy,

I don't know exactly where you are in Maine but to a great degree the farther north one is the worse the situation for solar - especially in the winter when more power is generally needed.

For Dover-Foxcroft PV Watts provides the following for a 1 kW DC system - (I used Dover as it is somewhat central to the state)

"PVWATTS v.2: AC Energy and Cost Savings"

"Station Identification"
"Cell ID:","0276358"
"State:","Maine"
"Lat (deg N):", 43.65
"Long (deg W):", -70.32
"PV System Specifications"
"DC Rating:"," 1.0 kW"
"DC to AC Derate Factor:"," 0.770"
"AC Rating:"," 0.8 kW"
"Array Type: Fixed Tilt"
"Array Tilt:"," 45.0"
"Array Azimuth:","180.0"

"Energy Specifications"
"Cost of Electricity:","12.1 cents/kWh"

"Results"
"Month", "Solar Radiation (kWh/m^2/day)", "AC Energy (kWh)", "Energy Value ($)"
1, 3.46, 88, 10.67
2, 4.21, 96, 11.64
3, 5.38, 130, 15.76
4, 5.04, 114, 13.82
5, 5.26, 118, 14.31
6, 5.13, 108, 13.09
7, 5.41, 115, 13.94
8, 5.45, 118, 14.31
9, 5.12, 111, 13.46
10, 4.12, 95, 11.52
11, 2.88, 67, 8.12
12, 2.93, 73, 8.85
"Year", 4.53, 1234, 149.61

So a 1 kW DC PV system should provide something like 1200-1250 kWh/year - these numbers are based on long term averages of NASA data so any given year may be better or worse.

The annual average insolation is not as bad as many places but not all that great either.

Russ