Federal Tax Credit Question regarding possible solar shed

[Rumast21]

Hello,

I'm considering building a shed to house my EG4 18k PV inverter and PowerPro as well as use the roof for some additional solar panels. Is there any guidance as to whether these types of construction costs are qualified as part of the federal tax credit?

Thanks.

 

[Rumast21]

On further consideration, I realized this would be easily manipulated, so the answer is almost a guaranteed no. Please feel to reply if I'm missing something.

 

[SunDave]

These things are somewhat interpretation. You would have to decide for yourself. I didn't see a way to do that when I read it, so I didn't put costs in for rebuilding the wall where I put the inverter. It said something about labor costs for that part, but I did it myself. I didn't want to risk the credit over a couple hundred dollars.

Instructions for Form 5695 (2023) | Internal Revenue Service

www.irs.gov

 

[Tulex]

Where you get into trouble is if it's dual use. IF it's only used for solar, there is no reason you can't write it off.

 

[Q-Dog]

You are allowed to take credit for some site prep, but I don't think you can take the credit for a building unless maybe it is purely for the solar install. And you certainly can't take the credit for your own labor.

I would talk to a tax professional, not some rando like me on the internet.

 

[SunDave]

Where you get into trouble is if it's dual use. IF it's only used for solar, there is no reason you can't write it off.

My opinion would differ just because the language currently says it would not include roof trusses, etc. even if they support solar panels. So why would roof trusses that cover batteries be in a completely different category. I love open interpretations, I personally don't see it being that broad.

 

[Tulex]

This is my build

As is, there is no reason they could question my expense claimed to build it. If I enclosed part or it and put my inverter in it, same thing, they wouldn't contest it.
IF I use it for other purposes, then they have a leg to stand on.

 

[Tulex]

My opinion would differ just because the language currently says it would not include roof trusses, etc. even if they support solar panels. So why would roof trusses that cover batteries be in a completely different category. I love open interpretations, I personally don't see it being that broad.

I think that's for two reasons.

One, they don't want people reroofing their houses and calling it a solar expense.
Two, it's not a single purpose use.

 

[RyGuy]

What about a small shed just large enough for the equipment but no panels on top.. Only use is solar?