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Could someone clarify this information on the Solar Tax Credit?
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They wouldn't ever possibly do that, WOULD THEY ??Comment
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If you have a Regular IRA......then transfer enough to a Roth IRA or newly created Roth IRA which will generate a tax liability. This tax liability can then be offset by the solar credit. Any CPA or tax accountant can do the necessary calcs........Comment
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Our current bid is from SolarMax. The rep insists that the tax credit can be rolled over for a period of up to 5 years. In fact, one of their web pages has information pertaining to that.. and it's dated March of this year.
www.solarmaxtech.com/solar-t...dit/riverside/
I still plan on talking to a tax advisor.
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From TurboTax for tax year 2019: "However, it is not yet clear whether you can carry unused credits to years after the solar credit expires."
https://turbotax.intuit.com/tax-tips...ergy/L7s9ZiB4D
Here is the same thing stated on one of SolarMax's own pages: "However, it is not yet clear whether you can carry an unused solar tax credit to years after the solar credit expires in 2022."
https://www.solarmaxtech.com/offers/...s%20in%202022.
Definitely check with a CPA before assuming anything the installer says is true when it come to taxes.Last edited by PugPower; 06-10-2020, 12:59 AM.Comment
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I'm not trying to be political just giving my opinion based on observances:
If Trump gets re-elected the chances are slim to none that the fed. solar credit will be renewed.Comment
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Off Topic but I think if the other side gets in the solar credit will be the least of my money problems.Comment
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JWB brought up a good point earlier..."I've heard that once the tax credits disappear here in 2022, the Solar industry will probably adjust their rates to remain viable and attract new customers."
If the tax credit disappears it will definitely have a negative effect on the solar industry. As far as pricing being adjusted down to compensate, I guess that will depend on a number of factors such as the price of hardware, labor costs, etc. The price of solar equipment has decreased over time as new competitors and new manufacturing methods entered the market. I don't believe it has deceased greatly when compared to a year ago, but over a period of years it has definitely gone down. I have no idea what the labor costs are for a solar installation. I assume someone who is involved in the business could comment on the general mark-up and profit involved in a typical solar installation. If I didn't already have solar I would be more concerned with future changes to the net-metering structure. IMO If net-metering were eliminated, like what happened in Hawaii, that would have larger effect on the general solar industry than the loss of the tax credit.Comment
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Customer acquisition expense is a big factor and I don't know if that is fixed or variable. What happened in Hawaii is average system size increased because batteries were added to make up for lack of net metering. That also reduced the approval bottleneck with the utilities since only a building permit was required. There are so many local factors and the only common one in the USA is the Federal Tax credit. I think in some markets even without the tax credit solar is competitive and doesn't need a subsidy to save money for the consumer.9 kW solar, 42kWh LFP storage. EV owner since 2012Comment
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Adding batteries would increase system costs significantly and thus make solar less attractive for consumers like me who focus on the "break-even" time.Comment
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Dave W. Gilbert AZ
6.63kW grid-tie ownerComment
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Same think is happening with solar farms in California. . More of them are being constructed with batteries because the returns are better if you can offer a power agreement for times when the sun isn't shining. .
9 kW solar, 42kWh LFP storage. EV owner since 2012Comment
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I wonder just how electric use breaks down in Hawaii? If largely air conditioning, it would be a
prime market for direct solar powered heat pumps, set to use little to no line power. Bruce RoeComment
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9 kW solar, 42kWh LFP storage. EV owner since 2012Comment
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I don't see any information backing up that claimed 5-year period except on their own site. I see dozens of tax sites and solar sellers explaining you cannot roll over the credit past the year the residential solar tax credit goes away which is 2021 (but ongoing for commercial). Maybe if you are a commercial installation you could take 5-years to use the credit but I would not count on that for residential past the 2021 tax year.
I would be interested in finding out WHY the tax credit for solar installation is going away? Does the government know the technology is maturing and will eventually come down in price anyway? Or be replaced by something new and cheaper?
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