30 Percent Tax Credit ?

[Danke]

The thing is, too many companies just jack up the price by 30%. Homeowner feels like they got a good deal, and the solar contractor is thrilled they made 30% more money to do 0% more work.

Hence this forum: DIY

 

[cs1234]

Which means for those of us that don't file we get nothing.

You'll eventually get something, that's for sure.

 

[OzSolar]

The thing is, too many companies just jack up the price by 30%. Homeowner feels like they got a good deal, and the solar contractor is thrilled they made 30% more money to do 0% more work.

I was looking forward to the tax credit going away and sending the majority of solar installation companies back to more honest endeavors like Brooklyn bridge sales and timeshares but alas...

 

[Mattb4]

You'll eventually get something, that's for sure.

I get to watch inflation happen. I guess that is a plus.

 

[Risky Rob]

Which means for those of us that don't file we get nothing.

The proposed bill calls for a refundable tax credit. If you spend $1000 on solar equipment, and don't have a tax liability, you could still get a refund of $300.

 

[Mattb4]

The proposed bill calls for a refundable tax credit. If you spend $1000 on solar equipment, and don't have a tax liability, you could still get a refund of $300.

But I would have to file. Then they would know I exist.

 

[Danke]

The proposed bill calls for a refundable tax credit. If you spend $1000 on solar equipment, and don't have a tax liability, you could still get a refund of $300.

Not anymore:

”One measure that was hoped for, but is not in the bill, was the “refundability” clause. Refundability means that if the tax credit value exceeds taxes owed on the year, it would be paid as a cash refund. This provision was not included, which hampers the value of the credit for some individuals. However, the credit can be rolled over to a following year.”

 

[cs1234]

Not anymore:

”One measure that was hoped for, but is not in the bill, was the “refundability” clause. Refundability means that if the tax credit value exceeds taxes owed on the year, it would be paid as a cash refund. This provision was not included, which hampers the value of the credit for some individuals. However, the credit can be rolled over to a following year.”

That's too bad, it's like the $3000 stock market losses per year with roll over credit.. I can get that in a day! ?

 

[SoakedUp]

Do things like a Bluetti AC200max qualify for the tax credit?

 

[cs1234]

Do things like a Bluetti AC200max qualify for the tax credit?

The consensus I'm reading all over the web when I searched for "does a stand alone solar generator qualify for tax credit" seems to indicate that they do as long as you are using them to generate electricity at your home.

It doesn't have to be connected to the grid in anyway, you could just be using it as a back up generator or running it from an extension cord.

That's the the "internet verdict" on the current expiring/expired bill. I don't know on the new one. The new bill is supposed to just be an "extension" of the existing solar tax credit, so one would think it wouldn't change details other than maybe amounts / dates.

 

[SoakedUp]

The consensus I'm reading all over the web when I searched for "does a stand alone solar generator qualify for tax credit" seems to indicate that they do as long as you are using them to generate electricity at your home.

It doesn't have to be connected to the grid in anyway, you could just be using it as a back up generator or running it from an extension cord.

That's the the "internet verdict" on the current expiring/expired bill. I don't know on the new one. The new bill is supposed to just be an "extension" of the existing solar tax credit, so one would think it wouldn't change details other than maybe amounts / dates.

And how long does that unit have to stay at the home. Say I get the credit for two ac200s purchased. Then 6 months late I want to sell one or use on camping trips. Is this allowed? Or does the unit have to stay plugged in permanently at the primary home? If you’re audited, will they send someone to your home to check that those units are there?

 

[cs1234]

And how long does that unit have to stay at the home. Say I get the credit for two ac200s purchased. Then 6 months late I want to sell one or use on camping trips. Is this allowed? Or does the unit have to stay plugged in permanently at the primary home? If you’re audited, will they send someone to your home to check that those units are there?

Spoiler: possibly wildly inaccurate information provided.

5 years, you have to keep it for 5 years of give a prorated amount back.. according to this link.

As to auditing you and verifying it's there, no, I seriously doubt that would ever occur. Like much of our legal system, it's an honor system, at least until it isn't. They would probably only ask for receipts, and if you don't have them, disallow the credit.

In regards to using it mobile, while away from your house camping, again, nobody is going to verify anyway. Sounds like the honor system again. However, they do allow you to claim the credit on as many homes as you own, even vacation properties, one could argue that while you're camping.. you are in your vacation home.

 

[dweick]

The new bill is retroactive to Jan 1, 2022 for solar so if you already did an install in 2022 your tax credit would be 30% not 26%
The new bill also provides the same tax credit for energy storage so you can install batteries without needing to install solar to get the tax credit

 

[SoakedUp]

5 years, you have to keep it for 5 years of give a prorated amount back.. according to this link.

As to auditing you and verifying it's there, no, I seriously doubt that would ever occur. Like much of our legal system, it's an honor system, at least until it isn't. They would probably only ask for receipts, and if you don't have them, disallow the credit.

In regards to using it mobile, while away from your house camping, again, nobody is going to verify anyway. Sounds like the honor system again. However, they do allow you to claim the credit on as many homes as you own, even vacation properties, one could argue that while you're camping.. you are in your vacation home.

Great information! Thank you. One more question. Would one still qualify for the credit if they aren’t the owner but say renting a room and paying rent? Or if I’m related to the owner and I’m renting the whole house. I don’t plan to actually use solar panels but want some kind of battery back up for power outages and also to be able to charge the batteries during super off peak hours and then use the batteries during high peak hours to reduce my energy cost basis.

 

[cs1234]

Great information! Thank you. One more question. Would one still qualify for the credit if they aren’t the owner but say renting a room and paying rent? Or if I’m related to the owner and I’m renting the whole house. I don’t plan to actually use solar panels but want some kind of battery back up for power outages and also to be able to charge the batteries during super off peak hours and then use the batteries during high peak hours to reduce my energy cost basis.

I don't think it matters if you are renting or not, at least not with your portable generator, as it would follow you to whatever "home" you move to.. even if that's living on the streets.

Here is a site that mentions what you're talking about, doesn't look promising if you believe what they are saying:

If you plan to combine solar panels and batteries in a home installation, batteries only qualify for the 26% tax credit if they are fully charged with solar energy. In other words, you are not allowed to store electricity from the power grid.

Looks like you had better get yourself a solar panel and charge it with that, unless you want a guilty conscience for not following the honor system.

 

[dweick]

Yes I'm hoping it applies to 2022 installs currently 26%

It will if it passes, retroactive back to Jan 1, 2022 install dates

 

[dweick]

Great information! Thank you. One more question. Would one still qualify for the credit if they aren’t the owner but say renting a room and paying rent? Or if I’m related to the owner and I’m renting the whole house. I don’t plan to actually use solar panels but want some kind of battery back up for power outages and also to be able to charge the batteries during super off peak hours and then use the batteries during high peak hours to reduce my energy cost basis.

No for tenants unless there is some ownership interest like an apt coop

 

[dweick]

I don't think it matters if you are renting or not, at least not with your portable generator, as it would follow you to whatever "home" you move to.. even if that's living on the streets.

Here is a site that mentions what you're talking about, doesn't look promising if you believe what they are saying:



Looks like you had better get yourself a solar panel and charge it with that, unless you want a guilty conscience for not following the honor system.

New bill, if passed, eliminates the requirement that energy storage systems be charged by sun/solar/…

A purely grid charged battery system would be entitled to the 30% credit

IF the bill is signed into law

 

[cs1234]

New bill, if passed, eliminates the requirement that energy storage systems be charged by sun/solar/…

A purely grid charged battery system would be entitled to the 30% credit

IF the bill is signed into law

That's cool, looks like I need to see a summary of all the proposed changes from the old bill to the new bill. I can't just perform google searches on the old one and provide them to our friend asking questions.

 

[dweick]

5 years, you have to keep it for 5 years of give a prorated amount back.. according to this link.

As to auditing you and verifying it's there, no, I seriously doubt that would ever occur. Like much of our legal system, it's an honor system, at least until it isn't. They would probably only ask for receipts, and if you don't have them, disallow the credit.

In regards to using it mobile, while away from your house camping, again, nobody is going to verify anyway. Sounds like the honor system again. However, they do allow you to claim the credit on as many homes as you own, even vacation properties, one could argue that while you're camping.. you are in your vacation home.

The recapture is for the ITC for commercial installations/projects not the homeowner solar tax credit