DIY Solar install TAX credit (on labor and not just gear)

Northbound

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Oct 3, 2020
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I could not find a satisfactory previous thread to answer this one, so I am creating a new one. Apologies if I missed it somehow.

Anywayes, I just got my permit for a grid tied roof installed 3.5kW solar system and picked up my solar gear from the warehouse.
The manager there did give me a tip that I can claim not only the cost of the gear but also the labor to the extend what a solar company would charge. I guess all I’d need is a quote for a comparable size system. If true, this would be huge news and return my investment in about 3 years, vs 6 years or so.
However, I searched the internet and could not find if this actually can be done. I looked at the TAX forms and there does not seem to be an answer there.
So I am currently assuming that it can be done, but if audited then this may or may not work.

Anyone has been there?

Thanks,
Rick
 

mopat

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Jun 22, 2020
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The labor costs "allowable to the onsite preparation, assembly, or original installation … and for piping or wiring to interconnect such property to the dwelling unit shall be taken into account for purposes of" calculating the qualified solar electric property expenditure QSEPE (Sec. 25D(e)(1)).

You cannot claim costs which were not incurred.
 

Bob B

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If you pay enough taxes to recoup the cost .... pay someone to do it.

Does it matter who you pay?
 

Northbound

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If you pay enough taxes to recoup the cost .... pay someone to do it.

Does it matter who you pay?
I can’t follow that logic. If i pay someone else, ROI is like 15 years away. for DIY it is 5 years. A nobrainer to me
 

MPRanger

Beefield, GA 30461
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Location
Beefield Georgia
I could not find a satisfactory previous thread to answer this one, so I am creating a new one. Apologies if I missed it somehow.

Anywayes, I just got my permit for a grid tied roof installed 3.5kW solar system and picked up my solar gear from the warehouse.
The manager there did give me a tip that I can claim not only the cost of the gear but also the labor to the extend what a solar company would charge. I guess all I’d need is a quote for a comparable size system. If true, this would be huge news and return my investment in about 3 years, vs 6 years or so.
However, I searched the internet and could not find if this actually can be done. I looked at the TAX forms and there does not seem to be an answer there.
So I am currently assuming that it can be done, but if audited then this may or may not work.

Anyone has been there?

Thanks,
Rick
My tax man (I'm a farmer and though I have a few degrees of stupid, I can't memorize tax code) states that according to Uncle Sams audit teams my personal labor has no value on this solar tax credit. While I can and do collect the deduction annually for equipment, my labor is not part of the tax credit. This might help, I did not read it after Mr. Corporate Accountant shared the news with me. https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
 

Bob B

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Sep 21, 2019
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I can’t follow that logic. If i pay someone else, ROI is like 15 years away. for DIY it is 5 years. A nobrainer to me
I was just asking how much of that labor cost you could get back with a tax credit.
 

JoeHam

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Dec 30, 2019
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If you are US based the proper form and instructions are here :


I haven’t reviewed the rules for a while but I believe the cost of tools for DIY is included.
 
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Northbound

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Oct 3, 2020
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I was just asking how much of that labor cost you could get back with a tax credit.
I understand now, it’s a lot. Local installer quote as are around $12-13k and I hope to get away with $6.5-7k DIY. Thanks
 

Northbound

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Oct 3, 2020
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If you are US based the proper form and instructions are here :


I haven’t reviewed the rules for a while but I believe the cost of tools for DIY is included.
Absolutely, tools are included, that is my interpretation as well, but the tools needed are only <$100 vs labor which is A LOT
 

Northbound

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TheHomePros.us

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Sep 29, 2021
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100% of the labor of a professional install is applied to the federal tax credit. Look at my resources and you'll find this link. https://www.solarreviews.com/blog/federal-solar-tax-credit
But definitely shop around for a variety of quote to make sure you get the best price for your install. Don't overpay
I understand now, it’s a lot. Local installer quote as are around $12-13k and I hope to get away with $6.5-7k DIY. Thanks
Just make sure you get several quotes from different solar providers. You can find them locally or just go online for a quote and a local provider will get back to you promptly. You want to make sure you're comparing apples to apples so you don't overpay. http://www.TheHomePros.us/solar among others are excellent sources for pricing.
 
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