TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC
  1. TMC is currently READ ONLY.
    Click here for more info.

Master Thread: Energy products and Tax discussions

Discussion in 'Tesla Energy' started by jjrandorin, Dec 23, 2020.

Tags:
  1. mcslave8

    mcslave8 New Member

    Joined:
    Apr 9, 2016
    Messages:
    1
    Location:
    buffalo
    I’m in NY and looking to buy solar panels. I know this GREEN act shooting around congress will supposedly up the tax credit to 30%. I also know the NYSERDA credit phases out over time. I’m wondering if anyone knows at what point you’re locked into the NYSERDA credit. Is it from time of order or install? I’m trying to figure out how to maximize my savings. I’d like to order now to qualify for the NYSERDA money and hope that the GREEN act gets passed before year end so I can capitalize on it all. But I also don’t know if they were to pass something upping the tax credit if I would qualify if I ordered before it was passed.

    Also I was gonna pass on powerwall for now since it’s not a necessity for us at the moment. But I started thinking about purchasing 1 or 2 powerwalls from someone selling their referral award powerwall. I was wondering if anyone had any experience with how Tesla handles the install of these? Do they just charge the same install fee and allow it? And does anyone know if you can claim the tax credits on powerwalls bought secondhand?

    Thanks in advance for any insight.
     
  2. wjgjr

    wjgjr Member

    Joined:
    May 11, 2020
    Messages:
    955
    Location:
    Silver Spring, MD
    Like a lot of questions in this thread, the best answer on the credit really is to check with a tax advisor. However, my thought is that you should be able to since you are purchasing it for use with a solar install. The seller would not be able to claim the credit because it was not used for solar. I believe you are correct on how Tesla handles it - you just pay the applicable install fee, though you should check with Tesla (as it might even depend on whether the reward-earner takes delivery or has the reward transferred to you.)

    I do not know anything about NY credits. As far as the federal tax credit, I think if it is increased, it would probably be retroactive to the beginning of the year (there is precedent for that) but there are no guarantees that will happen, that the act will pass at all, or that it won't be amended back to 26%, for example. While this thread is about tax discussions, for the NY portion of your question, you might want to start a new thread for visibility. If it is phasing out, it probably makes sense to try and lock it in whenever and however that is done, and then hope things work out on the federal side. (And, even if they don't, maybe the NY incentives make up for it.)
     
  3. af88

    af88 Member

    Joined:
    Sep 28, 2019
    Messages:
    185
    Location:
    Cali
    Curious on the feedback here if anyone has experience.

    If you add additional PW to your existing system which you claimed Solar/ITC credit in the past, would you be allowed to claim another federal solar/ITC credit for adding additional PW to your existing system?

    On the flip side I don't believe if you add additional solar panels to your home for which you already claimed solar/itc credit in the past is allowed according to the IRS guidelines on energy.gov, but I could be wrong?

    On Intuit turbotax forum this question came up and the response was you can claim it for the new equipment but that was from a user.
     
  4. Laketime

    Laketime Member

    Joined:
    Dec 13, 2020
    Messages:
    110
    Location:
    LI NY
    I have never heard of a situation where you were not able to claim the ITC for a new install/add-on (edit- for batteries only where they are solar charged).
     
  5. wjgjr

    wjgjr Member

    Joined:
    May 11, 2020
    Messages:
    955
    Location:
    Silver Spring, MD
    As far as I am aware, there is no restriction on the number of times you can claim the credit as long as it is a "qualified solar electric property expenditure" per section 25D of the US Code. This would include adding batteries, adding more solar to an existing setu, or adding another solar install to the same or another property (noting solar does not have to be primary residence, unlike some other credits.) I would be interested in anything you see on energy.gov that suggests otherwise. There are other credits (like the energy efficiency credit) that have lifetime limits, but the ITC is unlimited in both amount and number of times it can be claimed.
     
    • Informative x 1
  6. Ampster

    Ampster Active Member

    Joined:
    Oct 5, 2012
    Messages:
    1,633
    Location:
    Sonoma, California
    I have taken the solar credit as i have added inverters and batteries to my system. I am just a user and unless you want to request a letter ruling all you are going to get is user experience. You can also pay an accountant to make the same analysis previous posters have offered.
     
  7. af88

    af88 Member

    Joined:
    Sep 28, 2019
    Messages:
    185
    Location:
    Cali
    This was on energy.gov

    "The solar PV system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment."

    Kelly Pickerel editor in chief of Solar Power World was asked the same question and her response was only once on original install too.

    I'm under the same impression as you all there is no limit but maybe she is reading into the energy.gov different?
     
  8. Ampster

    Ampster Active Member

    Joined:
    Oct 5, 2012
    Messages:
    1,633
    Location:
    Sonoma, California
    Each addition is an "original install" of that equipment. I interpret that statement to mean no double dipping or used equipment.
     
    • Informative x 1
    • Like x 1
  9. wjgjr

    wjgjr Member

    Joined:
    May 11, 2020
    Messages:
    955
    Location:
    Silver Spring, MD
    That is exactly how I understand it. There is a market for used solar - sometimes people either want or need to remove existing solar, sometimes to replace with a newer and/or larger system. The old one can be sold, but the purchaser of the second-hand system would not be entitled to claim the ITC for the costs related to the previously-used system.
     
    • Like x 1
  10. jjrandorin

    jjrandorin Moderator, Model 3, Tesla Energy Forums

    Joined:
    Nov 28, 2018
    Messages:
    7,114
    Location:
    Riverside Co. CA
    Thats how I read that too. Meaning, I cant claim the credit on my home / install this year, and then sell the home, and have whoever bought it try to claim the value of said equipment on their taxes as well. Each install is only eligible for the credit on its initial installation, but by the same token, each product is eligible on its initial installation.

    Saying that, however, I am just a user as well, and not as well informed on this specific topic as some others in this section.

    =================================

    (Moderator note: while this belongs in the "energy products and tax discussions" master thread above, this question is a bit different than the usual ones, so I am going to leave it here for a few days before moving the posts into that thread.
     
  11. af88

    af88 Member

    Joined:
    Sep 28, 2019
    Messages:
    185
    Location:
    Cali
    I contacted an accountant and was told you can claim new updates, but they had not read the energy.gov brief.
     
  12. dhrivnak

    dhrivnak Active Member

    Joined:
    Jan 8, 2011
    Messages:
    4,387
    Location:
    NE Tennessee
    I sure did, twice with no issues.
     
  13. af88

    af88 Member

    Joined:
    Sep 28, 2019
    Messages:
    185
    Location:
    Cali
    For the sake of this topic, it is all related to the same and only homeowner.
     
  14. af88

    af88 Member

    Joined:
    Sep 28, 2019
    Messages:
    185
    Location:
    Cali
    I don't think anything is preventing anyone from making multiple claims and until someone is audited and finds out the hard way we can assume based on our interpretation it is okay to do so.

    I'm waiting for a second CPA to call me back to confirm but also not sure how familiar they are with solar credit
     
  15. jjrandorin

    jjrandorin Moderator, Model 3, Tesla Energy Forums

    Joined:
    Nov 28, 2018
    Messages:
    7,114
    Location:
    Riverside Co. CA
    Even if this was the case, pretty much the worst that would likely happen is needing to remove it from your taxes. Its not likely to be claimed as negligence or fraud, as it is fairly easy to explain why a reasonable person would think it was ok since it was new equipment.

    At least, thats how I look at it.
     
    • Like x 1
  16. af88

    af88 Member

    Joined:
    Sep 28, 2019
    Messages:
    185
    Location:
    Cali
    Here is another article

    Adding Solar Panels to an Existing System in 2021 | EnergySage

    Incentives
    If you’re adding additional panels onto your system, you may not be eligible for some of the same incentives (such as tax credits and rebates) that you claimed when you originally installed your system. Many incentives are only allowed to be claimed once per property, or once per person.
     
    • Disagree x 1
  17. wjgjr

    wjgjr Member

    Joined:
    May 11, 2020
    Messages:
    955
    Location:
    Silver Spring, MD
    Agreed, and this is another area where I feel there is really no question on the matter (but I am not a tax expert, so I only speak for what I would do.) There is no language in the tax code, forms, or instructions that would suggest the residential ITC is limited to a single claim. Any reference to "original install" is clearly referring to the actual equipment and not the "original system".
     
    • Like x 1
  18. wjgjr

    wjgjr Member

    Joined:
    May 11, 2020
    Messages:
    955
    Location:
    Silver Spring, MD
    That is not specific to the ITC and may well be true for state/local/utility incentives. For example, the state of MD has a $1,000 grant/rebate for solar, but "An eligible property may receive only one Rebate per technology." So, in adding on, you would not be able to get a second $1,000. (But the program also covers things like geothermal, so you could get another $1,000 by installing that different technology, which is the reason for the wording.)
     
  19. af88

    af88 Member

    Joined:
    Sep 28, 2019
    Messages:
    185
    Location:
    Cali
    To add to the confusion, I got a call back from the second tax professional and was told it is only once per property per owner and upgrades or additions can't be deducted.

    I got one tax pro telling me no and one yes. On the turbotax forum the answer was yes you can claim new equipment but that is from a expert user not a tax pro.

    Does anyone know of a CPA who is familiar with the ITC rules, would be curious to get their feedback.
     
  20. MorrisonHiker

    MorrisonHiker S 100D 2021.4.11

    Joined:
    Mar 8, 2015
    Messages:
    9,151
    Location:
    Colorado
    @cpa would you be able to provide your opinion on this?

    Many others have mentioned above that they believe the ITC can be taken with each new solar system install. I believe this is correct and claimed it on my original 16.5 kW install in 2018 as well as on my additional 4 kW install in 2019.
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC