We have a Tesla solar system (panels, now power wall) on 12/23. What has to happen for us to qualify for the federal tax credit in 2020? Install complete, powered on....? Also, should I expect the usual Tesla delays that I have experienced with their vehicle side, or are they pretty good about hitting schedules?
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Looking for Tax Credit Clarification
- Thread starter wrf2e
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I was told it had to be 100% paid for, which I did in dec of last year for my 2019 credit. I did not get PTO for months later
Pretty much zero chance of having the city/county final inspection before the end of the year. Most agree that installed and passing inspection is required. There's some debate over whether it has to be paid for or not before the end of the year but this CPA's opinion is that it must be paid for in the tax year you want to take the deduction:
Speed up PTO?
Everyone agrees PTO is not required.
Speed up PTO?
Everyone agrees PTO is not required.
I just had my system installed on 11/5. Waiting for Tesla to schedule the inspection with my city, contacted my advisor twice and still haven't gotten any insight on when they will schedule the inspection. My concern is passing the inspection and getting invoiced and paid before the end of the year. I don't want to lose that additional 4%.
its not clear that it has to be paid. Install has to be complete and put in service
"If you financed the system through the seller of the system and you are contractually obligated to pay the full cost of the system, you can claim the federal solar tax credit based on the full cost of the system. Miscellaneous expenses, including interest owed on financing, origination fees, and extended warranty expenses are not eligible expense"
"If you financed the system through the seller of the system and you are contractually obligated to pay the full cost of the system, you can claim the federal solar tax credit based on the full cost of the system. Miscellaneous expenses, including interest owed on financing, origination fees, and extended warranty expenses are not eligible expense"
I didn't finance my system, but if I paid $100 for the initial deposit. Would it be considered that the rest is on loan with Tesla, until inspection has passed? Wishful thinking?
I'd check with Accountant. Looks like the only qualification for the credit is "Put in Service" which would mean Install complete
The first part is the best advice for everybody asking since none of us will stand behind somebody else's tax return in the event of an IRS audit.
That said, the way I have read it, I agree that install complete is all that is necessary - not inspection and not PTO. If Tesla installs, and ideally does at least a brief test (just to have some documentation that even 0.1 kWh was generated) that should suffice. Even payment may not be required to claim the 26% (though I note it might be interesting to see the 2020 forms and whether it indicates you could claim the 26% but would have to wait a year to claim it.) But, since this issue did not apply to me, I can't be certain of all the rules.
I think it's a grey area with "put into service"=PTO but unlike a car where title transfer/driving off lot is clear, here there are many waypoints. It also depends on the documentation needed (with a car it's the title)
It all depends on your risk tolerance, with a car many even claimed credit for leases till the IRS finally cracked down (easy to audit with VIN#s)
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