Federal Tax Credit - DIY Requirements?

[Ellis Redding]

Does the Federal Tax Credit apply to DIY installers?
Is there some check other than receipts?
Do you need a grid tie agreement or something?
The more I think about it, I pretty much doubt it. Should just be receipts...

 

[timselectric]

Just receipts

 

[Kornbread]

Receipts. Purchased a pallet of used Trina panels last year and received ~20% back on taxes.

 

[Catsrules]

Just receipts

Really?
I thought there was a clause saying the system needed to be installed and fully functional, wouldn't they want some proof of that?

Also from my understanding taxes only apply to new solar installs, so anything second hand or used doesn't count.

 

[Kornbread]

Really?
I thought there was a clause saying the system needed to be installed and fully functional, wouldn't they want some proof of that?

Also from my understanding taxes only apply to new solar installs, so anything second hand or used doesn't count.

I leave the clauses and what-not up to the tax man.

 

[ohsolar]

some info here:

DIY & no solar needed

 

[timselectric]

some info here:

DIY & no solar needed

That's old, it changed a couple of weeks ago.
Now it's 30% until 2034, I believe.

 

[SparkyJJO]

I know I can claim my main install, I'm wondering if I can include my separately bought 32 EVE cells for DIY battery packs and the Outback inverter I got to AC couple with my micros. Mostly wonder about the EVE cells..

 

[Ampster]

Mostly wonder about the EVE cells..

I did and there were no questions about the brand or origin. They have to be new. I just gave the dollar amount to my accountant. What specifically were you wondering about EVE cells? It is a good idea to keep a log or print out of your settings. If you are ever audited you may need to prove that they are charged from solar most of the time.

 

[SparkyJJO]

Just the fact they are a DIY thing and not a commercially available off-the-shelf product that your average installer uses.

 

[Ampster]

Just the fact they are a DIY thing and not a commercially available off-the-shelf product that your average installer uses.

I did not see those questions on the instructions of the IRS form. There are plenty of other threads discussing this question. Just look below in Similar Threads. I try not to overthink IRS issues. However if you are nervous taking advice from an anonymous poster on the Internet, consult a Tax Professional. My professional did not ask those questions and the form is pretty simple.

 

[32 volt boater]

Has anyone read the whole solar credit thing does it include boats and RVs?

Now the craziest thing is how confused the system gets when they want an address or 'residency' or 'domicile' from people on boats or travelling in RVs.

Where do you live? Well that would be where ever I happen to be at that very moment in time and am not dead yet.

Why don't you just use a friend or families address? That would be fraud.

 

[32 volt boater]

I should get my credit. So much diesel goes unburned because I use solar instead of generator like 99.9_ percent of other boats.

 

[Ampster]

Has anyone read the whole solar credit thing does it include boats and RVs

I only read the form and hundreds of forum posts on the subject. It just refers to residence. You don't even have to own it. There may be other qualifiers.

 

[Rocketman]

Has anyone read the whole solar credit thing does it include boats and RVs?

Now the craziest thing is how confused the system gets when they want an address or 'residency' or 'domicile' from people on boats or travelling in RVs.

To get the credit it has to be a “Residence”. The IRS defines a residence as somewhere that has eating facilities, sleeping facilities, and bathroom facilities. So if a boat has all three it qualifies - same with an RV. Both boats and RV can NOT be residence - if they are missing any one of the three.

As far as address, that’s not a problem either. It doesn’t have to be a fixed address. If you full- time RV and your residence is in Florida, they put your RV license plate number as your address on your Driver’s License.

If your Boat or RV spends time at your permanent address (the one on the IRS return) - use that.

 

[Ampster]

If your Boat or RV spends time at your permanent address (the one on the IRS return) - use that

Yes, consistency is important.

 

[LB3]

Has anyone read the whole solar credit thing does it include boats and RVs?

Now the craziest thing is how confused the system gets when they want an address or 'residency' or 'domicile' from people on boats or travelling in RVs.

Where do you live? Well that would be where ever I happen to be at that very moment in time and am not dead yet.

Why don't you just use a friend or families address? That would be fraud.

My understanding is it must be a residence. RVs count. If you can overnight on the boat, that should qualify as a second residence.

As for batteries, if they charge 100% from solar, you can apply 100% of price. If 30% of charging is from alternator or shore power, then you can apply 70%, etc.

 

[SparkyJJO]

I think from reading it, there is a capacity requirement. <3kWh can apply if 100% charged from solar. More than 3kWh doesn't have the solar requirement oddly enough.

From energy.gov

 

[Mithril]

My understanding is it must be a residence. RVs count. If you can overnight on the boat, that should qualify as a second residence.

As for batteries, if they charge 100% from solar, you can apply 100% of price. If 30% of charging is from alternator or shore power, then you can apply 70%, etc.

I don't see that in the rules? It seems it's just a flat cutoff of at least 3KW hours now for batteries.

 

[dougbert]

so new stuff, what about upgrading an inverter to a new one? Does that count?

 

[Mithril]

so new stuff, what about upgrading an inverter to a new one? Does that count?

Good question. My current plan relies on building up a system over time. I've read the official wording but its not 100% clear to me. Others have claimed they did addons and it was OK. I do wonder if I did addons over 3-4 years if I'd trigger an audit lol.
If I had to guess so long as you are not trying to claim 1000's in credits per year and you have the receipts it's likely OK.
And hopefully if not it's just "pay back the difference". But I'm not a tax person so

 

[dougbert]

Good question. My current plan relies on building up a system over time. I've read the official wording but its not 100% clear to me. Others have claimed they did addons and it was OK. I do wonder if I did addons over 3-4 years if I'd trigger an audit lol.
If I had to guess so long as you are not trying to claim 1000's in credits per year and you have the receipts it's likely OK.
And hopefully if not it's just "pay back the difference". But I'm not a tax person so

thanks

I built my first house solar generator back in 2000 with a trace sw4024 inverter and 2 MPPT controllers couple with 1200 watts of panels and 800 amp-hrs of LA batteries. The batteries aged out in 2010, and again 2016 added new LA batteries. In 2020 I upgraded my inverter to a Xantrex SW+ 5548. At the same time I sold the LA batteries at half their life left and moved to Salvaged Model S Tesla batteries configed at 48v.

In addition have added panels to which I have 7.3kw of panels

This past month I have retired the Xantrex and am waiting for a Schneider XW Pro to be shipped. SOOO my system has evolved over time.

I suppose I could file for this year's credit on the XW Pro's purchase and the various misc parts I had to acquire to interface it.

But it is NOT a new 'complete system', yes it IS a new inverter.

taxes laws are not adaptable