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2020 tax rebate?

Discussion in 'Tesla Energy' started by MacGreiner, Nov 9, 2019.

  1. MacGreiner

    Joined:
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    Does anyone have intel as to whether the rebate will be extended past the 2019 deadline? Even If I ordered now, I am skeptical that it would be finished by end of year.
     
  2. charlesj

    charlesj Member

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    There is a post someplace here that the 30% will stand, modified by congress, it seems, if you place a 5% payment before the year is up and completion of project can go into 2020 and even beyond, maybe into 2021 for larger projects.
    Actually, I downloaded the document that was referenced. Here you go:
     

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  3. charlesj

    charlesj Member

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    The only question is when can you deduct that credit, 2019 or 2020. I suspect when project is on line. :eek:
     
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  4. jjrandorin

    jjrandorin Another BMW convert

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    Its not a rebate, its a tax credit (important distinction because a rebate would be sent to everyone, while the tax credit is against your tax liabilities so you have to have enough tax liability to use it). With that being said, most people who would be in a position to consider a powerwall purchase (or solar + powerwall) are likely in a position to have enough tax liability to take the credit. If they arent, they likely know they arent.

    Back on topic, the tax credit is already set to go to 26% next year, so it will not be "gone" at the end of this year. It will be reduced from 30% to 26%. If you are just now thinking about planning a project, it is HIGHLY unlikely that you would get the project complete by the end of the year unless you choose an installer who has fairly immediate availability.

    Now, s @charlesj said, the question is, what constitutes starting the project to take the tax credit for this year. Thats something you should look at the linked document for.
     
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  5. dancudds

    dancudds Member

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    Cool - I kinda resigned myself to just taking 26% as I have my assessment scheduled for next week and there's no way PG&E are going to approve any installation even if they put it in the next day. I'll have to give this beautiful document a read and see how I can gift over Tesla 5% now (still waiting on my wildfire $1k adjustment too)
     
  6. dave999z

    dave999z Member

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    That linked doc is interpreting the commercial credit (Sec 48), not the residential credit (Sec 25).
     
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  7. charlesj

    charlesj Member

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    Thanks for the clarification. So far I don't see an extension or qualification for that sec 25. I guess it will be 26% then as I don't see it being completed by the end of year.
     
  8. charlesj

    charlesj Member

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    Your guide to the solar tax credit in 2019

    While this is not the Tax section, it tries to explain it and wonder what this paragraph means under "A Small history of the solar tax credit:

    "There was a time when, as the owner of a newly installed solar system, you couldn’t claim your deductions until your solar system was up and running. Now you can file your claim as soon as the installation process for solar power begins and as long as your solar energy system is up and running by the Dec. 31, 2023."

    I would think that the 30% applies if the process begins in 2019 and ends before 2024.

    Although, further down it also states it has to be installed in 2019. Oh, boy.
     
  9. charlesj

    charlesj Member

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    Yep, found another explanation of the differences between sec 48 and 25
    What to Know About the Solar ITC Step Down

    We got shafted. Has to be on line by 31 Dec 2019 for residential.
    Commercials got a huge break. 5% down by 31 Dec 2019 in the "commercial" project qualifies for the 30% ITC, not residential projects.
     
  10. Dan123

    Dan123 Member

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    If it is not up and running by December 31, 2019, you will lose 4%. On a $40,000, 4% is $1600. That's unpleasant, but I don't think it should stop you from installing the system.

    You can try to get the installer give you a discount.
     
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