Re: [RE-wrenches] the federal tax credit this year

[Gary Willett]

KIRK: My interpretation is that the tax credit for the situation you described would need to be claimed on the owner's 2016 tax return (filed in 2017). This advice is worth what you paid for it. I recommend that you tell your customer to query his tax professional about whether or not his system is deemed to be Qualified Solar Electric Property for tax year 2015. In previous years, I have provided my clients (system integrator, installer, owner) with the following when I am asked the question you got. Regards, Gary Willett Icarus Solar Engineering / Services LLC --------------------------------------------------------- REF: IRS PUB 5695 https://www.irs.gov/pub/irs-pdf/i5695.pdf NOTE: Form and Pub 5695 have not yet been released by the IRS for tax year 2015 (filed in 2016). They may be affected by the recent extension of the Residential Energy Credit, and the Commercial Investment Tax Credit, by the last minute omnibus legislation enacted this week. The previous sunset date of 12/31/2016 has been extended for 5 years. Here's the pertinent information from 2014 PUB 5695: Qualified Solar Electric Property costs are treated as being paid when the original installation of the item is completed. Qualified Solar Electric Property Costs:      Include, but not necessarily limited to: Solar modules. Labor costs for onsite preparation, assembly, and installation. Engineering fees, AHJ permitting fees and inspection costs, developer fees, utility interconnection fees. Balance of system (BOS) equipment, such as wiring, inverters, and mounting equipment, batteries, etc. Sales taxes on eligible expenses. When Costs are Deductible: The system owner can claim all the allowable costs for the PV installation they have paid, but must wait to claim them in the tax year the Qualified Solar Electric Property is "placed in service" (system is producing and the owner is consuming power). Placed in Service: Generally means that construction is completed, the owner's utility approved connecting the system to the grid, commissioning tests determined the equipment functions, and the taxpayer gained ownership and use of the system. [end] On 12/19/15 8:18 AM, Kirk Herander wrote: Hello, We may have discussed this earlier. I have a system in progress and the owner wants to take the tax credit in 2015. Trouble is I may not get it commissioned until the first week in January. What is the actual wording of the tax law? Is there any wiggle room to take the credit in 2015 if not operational on dec 31?   Kirk Herander Owner|Principal, VT Solar, LLC Celebrating our 25th Anniversary 1991-2016 www.vermontsolarnow.com dba Vermont Solar Engineering NABCEPTM  2003 Inaugural Certificant VT RE Incentive Program Partner 802.863.1202     _______________________________________________ List sponsored by Redwood Alliance List Address: RE-wrenches@lists.re-wrenches.org Change listserver email address & settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://www.mail-archive.com/re-wrenches@lists.re-wrenches.org/maillist.html List rules & etiquette: www.re-wrenches.org/etiquette.htm Check out or update participant bios: www.members.re-wrenches.org

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