I heard Congress just approved the extension of the 30% tax credit
beyond 2016. Supposedly the rule changed to "begin construction" from
"put into service", but I don't think that takes effect till 2017.
Definitely want a tax pro to look the whole thing over, especially in
light of the new rules.
R.Ray Walters
CTO, Solarray, Inc
Nabcep Certified PV Installer,
Licensed Master Electrician
Solar Design Engineer
303 505-8760
On 12/19/2015 3:31 PM, Gary Willett wrote:
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:
1. Solar modules.
2. Labor costs for onsite preparation, assembly, and installation.
3. Engineering fees, AHJ permitting fees and inspection costs,
developer fees, utility interconnection fees.
4. Balance of system (BOS) equipment, such as wiring, inverters,
and mounting equipment, batteries, etc.
5. 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 25^th Anniversary 1991-2016/*
*<www.vermontsolarnow.com>www.vermontsolarnow.com*
dba Vermont Solar Engineering
NABCEP^TM 2003 Inaugural Certificant
VT RE Incentive Program Partner
802.863.1202
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