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Solar tax credit? Fair or unfair?

What do you think is best?

  • We need the solar tax credit and it is fair

    Votes: 60 39.5%

  • No need for solar tax credit, but make exceptions for companies

    Votes: 2 1.3%

  • No subsidies for anyone!

    Votes: 80 52.6%

  • I do not care or do not live in America

    Votes: 10 6.6%
  • Total voters
    152
Will Prowse

Will Prowse

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Currently there is a bill that just passed in the house to get rid of the solar tax credit.

One convincing argument I have heard is that when utility companies buy solar equipment, the expense is a tax deduction. But when a homeowner purchases the same equipment, they need to use personal income that is already taxed.

My opinion is that I'm against all subsidies, but I also understand that we have lots of subsidies for utilities. Especially oil and solar companies. So people can make an argument that getting rid of the solar tax credit is "unfair".
 
Friendly said:
I think it will definitely push people to finish their builds this year, myself included. I'm hoping it doesn't make the permitting process take longer than it already is with a possible surge of design submissions soon.
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Agreed. I will buy up more components if they announce its ending after this year.

I think the tax credit would benefit everyone if it was changed to on US made solar products only as a forum member suggested in another post on here.
 
Actually the whole argument becomes irrelevant when one realizes that individual income tax is inherently unfair and illegal. We shouldn't be paying it at all including all the accountants and related costs associated with income tax.

Interestingly enough the tax code itself holds the answer. Anyone who is not a citizen of Washington DC, IS NOT liable for individual income tax. Its written right in the definitions in USC Title 26, Section 7701 (9) (10). Look it up. We shouldn't be paying individual income tax at all, its voluntary.
 
BentleyJ said:
Actually the whole argument becomes irrelevant when one realizes that individual income tax is inherently unfair and illegal. We shouldn't be paying it at all including all the accountants and related costs associated with income tax.

Interestingly enough the tax code itself holds the answer. Anyone who is not a citizen of Washington DC, IS NOT liable for individual income tax. Its written right in the definitions in USC Title 26, Section 7701 (9) (10). Look it up. We shouldn't be paying individual income tax at all, its voluntary.
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I may or may not be entirely aware of this.😎
 
Though I did take advantage of the solar tax credit ... the credits didn't, and won't, influence my decision to install more solar. But, as an incentive it does push more folks towards installing solar, so in that regard I support the solar tax credits. They should go to homowners only.

The tax cuts will put a lot more $$$s in my pocket than the solar credits ever would.
 
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BentleyJ said:
Interestingly enough the tax code itself holds the answer. Anyone who is not a citizen of Washington DC, IS NOT liable for individual income tax. Its written right in the definitions in USC Title 26, Section 7701 (9) (10). Look it up. We shouldn't be paying individual income tax at all, its voluntary.
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Try not filing your taxes and tell the IRS it is voluntary and see what they say --- I imagine they will get a bit cross with you and there would be negative consequences in the end...
 
If congress and the president eliminate the IRA's solar tax credits we can forget about reshoring solar manufacturing to the USA. And if tariffs of up to 3500 percent are imposed on many foreign solar components, buying our solar gear from other countries is going to get a lot more expensive. If this happens America's clean energy boom will dwindle down to a small fraction of what it is now - at least, for the next 4 years. Is that fair? In my opinion, its only fair if we also take away the tax credits that the oil, coal, and nuclear industries receive.
 
In general I'm against subsidizing anything, so that's what I voted.

I can play devil's advocate and say that subsidizing energy companies can be a matter of national security. I can at least understand the rationale behind subsidizing food production, mass energy production/distribution, etc.

Frankly I feel the solar tax credit for the most part only benefits wealthy Americans that probably would have bought solar anyways without the tax credit. I say that as someone who probably falls into that category.
 
As a political strategy it’s a thing, but as a cost saving measure against the tax reductions for the wealthy that they’re pushing through it won’t move the needle in terms of the deficit. With all the pork they put in to aid the wealthy, I don’t think it’s fair.

Giving it to big corps is probably better for the environment (they have scale!), but why should they get all the fun?
 
Rmart30 said:
Promotes manufacturing jobs in the US, US workers salaries, US workers paying in fed, state and local taxes. US workers spending those salaries in US stores vs it going out to other countries.
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There’s a video that… @Will Prowse made (?) talking about the state of solar mfg in the US and it’s depressing as f*ck (I’m a manufacturing engineer at heart). The reality is that it’s never coming back realistically as long as we’re “capitalist”.
 
I don't think that we can put utilities and regular people on the same scale.
When government wants something -- it gives incentives, opens some windows of opportunity.
One of the main reason I built the system were the federal and state solar tax credits, but considering the amount of money and efforts which went into it -- I'm not sure now that it was the right thing for me to do.
If tomorrow morning the President will sign executive order to give 300 thousand dollars for every new child -- even
all sixty years old will be in bed within next few hours despite a day light.
Whoever wanted or was thinking of the solar system -- got the tax credit and build/building the system by now.
 
A stable and secure power infrastructure is a matter of national security. As it is a main function of the US Federal gov't as per our Constitution to "provide for the common defense and promote the general welfare", ensuring things like safe and secure power, clean water, and a food supply is necessary. Corporations and "the free market" do not have these responsibilities, even though in the US the gov't acts through private entities whenever possible.

Subsidies and tax credits are a tool for encouraging private sector participation in the desired direction of stability and security for a particular market. Loan guarantees and subsidized lending are other tools commonly used. However, even with these supports there are no guarantees. Governments put their thumbs on the scales all the time. Specifically, this Federal administration is very pro-oil and anti-solar, actively choosing sides and providing subsidies to fossil fuel projects.

The IRA credits for personal energy production (solar/wind) are meant to encourage individual participation in the energy market, diversifying and strengthening our energy grid -- directly supporting national security and the general public welfare. The billionaire class who made/makes their money off of the existing fossil fuel industry is a major driving force around hindering solar and wind adoption. The industry is self-serving and resisting individual participation. We are a threat to their profit model.

The tax credits are a personal tax cut. I have a job and have money withheld from my paycheck towards paying my anticipated annual income tax burden. Credits are a reduction in the amount of tax I am liable for.They count as "tax paid" in exchange for money well spent. If I don't have the tax liability to begin with, I don't get the credit. Anyone else's taxes are not involved.
 
First remember that the government doesn't have any money. They collect money from taxpayers and dole it out as they see fit. If they are offering 30% tax credits on solar, it means they are charging everyone else for it. It's not fair to the people that don't want solar to charge them for their neighbors equipment rebates...
 
BentleyJ said:
Actually the whole argument becomes irrelevant when one realizes that individual income tax is inherently unfair and illegal. We shouldn't be paying it at all including all the accountants and related costs associated with income tax.

Interestingly enough the tax code itself holds the answer. Anyone who is not a citizen of Washington DC, IS NOT liable for individual income tax. Its written right in the definitions in USC Title 26, Section 7701 (9) (10). Look it up. We shouldn't be paying individual income tax at all, its voluntary.
Click to expand...
That's...insane. I took your advice and looked it up. Let me quote:

(9) United States
The term “United States” when used in a geographical sense includes only the States and the District of Columbia.

(10) State
The term “State” shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.
Click to expand...

All that means is "when we say 'States', we ALSO mean DC". Your interpretation has gotten people prison time in the past.
 
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