Current solar tax credits, eligible purchases and upgrades

[Sun_Dried_Toad]

Hi SDT, It sounds like you are where I am at. I assume that you are referring to the federal tax credit. I have an existing grid-tie that I have had in service for about 9 years and I am looking to add panels, SCC and hybrid inverter w/ battery. Did you ever get more details on what can be eligible for tax credits?

Regards,

I have not found an answer, for this year (2022) tax law yet.

my tax guy is good (I think?) but he is new to filing solar credits.

my wife sold her business this April, so our taxes may simplify. I *might* consider filing our own taxes this year. my boss is a CPA, so I can consult if needed. however, she is not familiar with solar credits either.

I honestly will most likely just file for the credit. I will buy about 13k to 14k worth of expansion supplies. surely they will fall safely under the credit??

from what I read Battery expansion is covered. that will constitute 2/3 to 3/4 of my expense.

this is the fun of dealing with theives... er... uh... I mean United States federal tax law.

 

[Ampster]

I'm curious, does DIY install qualify for the federal solar tax credit?

I am not a tax expert but I told my tax expert that a solar system was installed in 2021 and gave him the numbers. So far no one has asked if it was DIY and probably never will. It was all new equipment. There is no question on the IRS form about any of the details of the installation.

 

[onokai]

Yes battery expansion is covered-all things in the system are covered with the feds conduit ,wire, optimizers ,New solar water heaters (a stretch for sure) but all part of the system) The racks ,nuts, bolts, trencher rental -it all adds top . Mine is in 3 tax years so I have some experience over time.

 

[SYKSolar]

Yes

DIY off-grid solar can get federal and state credits for my home? Do you have to get a City permit to get the credit? I live in LA, California. Did you get it?

 

[Ampster]

Do you have to get a City permit to get the credit? I live in LA, California. Did you get it?

I got the credits for a permitted GT solar system and later got the credit for an unpermitted hybrid battery system. Putting numbers on a tax return is no garantee that something will survive an audit, so be careful with advice from an anonymous source on the Internet.

 

[timselectric]

DIY off-grid solar can get federal and state credits for my home? Do you have to get a City permit to get the credit? I live in LA, California. Did you get it?

I'm going to get it, this year.
But yes, diy counts.
Keep your receipts for 7 years, in case of an audit.

 

[Mike 134]

I got the credits for a permitted GT solar system and later got the credit for an unpermitted hybrid battery system. Putting numbers on a tax return is no garantee that something will survive an audit, so be careful with advice from an anonymous source on the Internet.

If you're going to take anonymous advice from the internet always verify with your favorite bartender.

 

[Jim Lee]

That just means that it must be applied towards your taxes due. It can't be received as cash.
For instance, if your taxes due for the year was $1500. And you had $2000 worth of tax credits. Your $1500 would be paid. And the other $500 would just not be counted. Because, you can't receive it as cash.
However, I believe that it can be carried over to the next year.

FYI Taxes due is misleading. Tax liability is what it is. You can get prepaid payments or paycheck withholdings refunded. Other than that Tim is right on.

 

[dgeist]

FYI Taxes due is misleading. Tax liability is what it is. You can get prepaid payments or paycheck withholdings refunded. Other than that Tim is right on.

I was looking for that question to be answered. To phrase that another way, lets hypothetically say my 2022 tax liability is fairly high, my pay withholdings are balanced, and my amount owed to the IRS comes out to $0 (without anything about solar included in the calcs). I also spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?

 

[timselectric]

I was looking for that question to be answered. To phrase that another way, lets hypothetically say my 2022 tax liability is fairly high, my pay withholdings are balanced, and my amount owed to the IRS comes out to $0 (without anything about solar included in the calcs). I also spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?

Yup

 

[dgeist]

Yup

And then (with current federal plans not yet expired) add capacity some more then next year and get a rebate on that, too?

 

[timselectric]

And then (with current federal plans not yet expired) add capacity some more then next year and get a rebate on that, too?

Yes, but the credit is being reduced each year.
If they don't extend it, it will disappear soon.

 

[Jim Lee]

I was looking for that question to be answered. To phrase that another way, lets hypothetically say my 2022 tax liability is fairly high, my pay withholdings are balanced, and my amount owed to the IRS comes out to $0 (without anything about solar included in the calcs). I also spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?

yes

 

[Jim Lee]

And then (with current federal plans not yet expired) add capacity some more then next year and get a rebate on that, too?

26% for 2022, 22% for 2023 taxes and after that I believe it is 10% for professional installers only. Unless it gets changed or extended.

 

[JoeHam]

spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?

Or just reduce your withholding by $2600 for the second half of this year and be done with it.

 

[justpages]

Yes, indeed, now there is an excellent federal program in the United States related to the federal tax credit for the purchase of solar energy. They say that with the timely payment of this loan, you will be able to get a reduction in the interest rate every month. Do you think it would be advisable to take it? I saw one guy here already did it. I will be glad to receive feedback. And yes, will you need paychecks? I recently generated them using ThePayStubs.

 

[Jim Burrow]

I don't know, but I think you can only get the tax credit if you purchased a system from a professional company that installs them. for Thousands of dollars of course!

I too would like to know if us DYI guys/gals could get the tax credit if we installed our system ourselves.

 

[timselectric]

Already answered above, many times.

 

[Ampster]

I too would like to know if us DYI guys/gals could get the tax credit if we installed our system ourselves

I am not a tax professional. I gave the numbers from my self install to my tax professional and he did not ask nor was there anywhere on the form that said "professional" install was required.

 

[JoeHam]

I don't know, but I think you can only get the tax credit if you purchased a system from a professional company that installs them. for Thousands of dollars of course!

Absolutely not true.

 

[Mike 134]

I don't know, but I think you can only get the tax credit if you purchased a system from a professional company that installs them. for Thousands of dollars of course!

I too would like to know if us DYI guys/gals could get the tax credit if we installed our system ourselves.

I'm always leery of internet information. I'll ask my local bartender instead.

 

[Hedges]

About Form 5695, Residential Energy Credits | Internal Revenue Service

Information about Form 5695, Residential Energy Credits, including recent updates, related forms and instructions on how to file. Use Form 5695 to figure and take your nonbusiness energy property credit and residential energy efficient property credit.

www.irs.gov

 

[Jim Lee]

I don't know, but I think you can only get the tax credit if you purchased a system from a professional company that installs them. for Thousands of dollars of course!

I too would like to know if us DYI guys/gals could get the tax credit if we installed our system ourselves.

26% tax credit this year for DIYer or professional install. Only stipulations are must be new (not used) and you can't count DIY personal labor.

 

[SYKSolar]

I don't know, but I think you can only get the tax credit if you purchased a system from a professional company that installs them. for Thousands of dollars of course!

I too would like to know if us DYI guys/gals could get the tax credit if we installed our system ourselves.

Who didn't know that if you get a professional to install a solar system for you, you can get tax credit? You?

 

[Mithril]

If the panels are used (offgrid system) but the other things are new, can we qualify on the new items? Used panels are cheap, but I don't trust used batteries or inverters (outside of being sold somewhere like here maybe).