New 30% Solar tax credit

[bayareaever]

I’ve heard that solar installs are once again earning a 30% tax credit, and that it’s retroactive to all of ‘22. Has anyone read the IRA bill to verify?

I installed in ‘21 and got a 26% itc. It would be great if 30% was retroactive to ‘21 too but that’s probably wishful thinking.

 

[WidowMaker03TX]

The Senate and House have passed the Inflation Reduction Act. The President has not but is expected to within a few days.

 

[bayareaever]

The Senate and House have passed the Inflation Reduction Act. The President has not but is expected to within a few days.

I’m aware of that. The text is freely available and presumably won’t change before it becomes law. I’m wondering if anyone here has taken the time to read through it, not to mention interpret it all regarding the solar tax credit, as well as other home energy upgrade credits.

The ev credit is a whole other issue that is being widely discussed and debated but is quite separate in this bill.

 

[jsmay311]

https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf

It’s difficult to parse the text of the bill since much of it amends existing law. So much of it reads like “Section 25D(h) is amended bystriking ‘December 31, 2023’ and inserting ‘December 31, 2034’.”

So unless you separately look up what whatever law is being amended, find the referenced section, and figure out the context, it’s hard to know what you’re reading.

They said, I think the solar tax credit stuff is on page 351. And I think the highlighted section below states that solar installed during 2021 still only gets a 26% credit.

 

[wwu123]

They said, I think the solar tax credit stuff is on page 351. And I think the highlighted section below states that solar installed during 2021 still only gets a 26% credit.

I've tried to parse the section after this as well regarding batteries, as a news article said the new credits apply to battery storage starting in 2023. So it seems clear batteries certainly qualify for 30% in 2023. And battery installed without solar in 2022 qualifies for 0%, I believe?

But since we know batteries installed WITH SOLAR have qualified for 26% up until now, is that provision only for standalone battery installs without solar? Does a battery installed with solar in this calendar year 2022 specifically now qualify for 0%, 26%, or 30% once the Act is signed?

 

[ptdusn]

The Senate and House have passed the Inflation Reduction Act. The President has not but is expected to within a few days.

There is another oxymoron, "Inflation Reduction Act"! Just like the "Affordable Care Act"!

 

[STS-134]

There is another oxymoron, "Inflation Reduction Act"! Just like the "Affordable Care Act"!

How did you miss the one between those two, called the "Tax Cuts and Jobs Act" which not only raised a lot of people's taxes, but also didn't create jobs, because it didn't incentivize corporations to actually create jobs? All it did was cut taxes on corporations without them having to do anything in exchange for those lower taxes, and instead incentivized stock buybacks.

https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf

It’s difficult to parse the text of the bill since much of it amends existing law. So much of it reads like “Section 25D(h) is amended bystriking ‘December 31, 2023’ and inserting ‘December 31, 2034’.”

So unless you separately look up what whatever law is being amended, find the referenced section, and figure out the context, it’s hard to know what you’re reading.

They said, I think the solar tax credit stuff is on page 351. And I think the highlighted section below states that solar installed during 2021 still only gets a 26% credit.

View attachment 840494

So looks like these incentives stay in place until EOY 2033? That's good, as I have no idea how long my roof is going to last but I think the proper time to do solar, if I decide to do so, is just after replacing the roof.

 

[bayareaever]

My solar was installed/paid for for in ‘21 but PTO didn’t happen until ‘22. I wonder if I can get the extra 4% tax credit for ‘22. The IRA verbiage says date ‘in service’ so seems possible. I’ll have to ask my cpa.

 

[Zinc_Saucier]

My solar was installed/paid for for in ‘21 but PTO didn’t happen until ‘22. I wonder if I can get the extra 4% tax credit for ‘22. The IRA verbiage says date ‘in service’ so seems possible. I’ll have to ask my cpa.

Did you take the credit on your taxes when you filed this year?

 

[bayareaever]

Did you take the credit on your taxes when you filed this year?

Yes I did

 

[Zinc_Saucier]

Yes I did

Then I’d say almost certainly not. How could you claim it in two different years?

 

[travwill]

My solar was installed/paid for for in ‘21 but PTO didn’t happen until ‘22. I wonder if I can get the extra 4% tax credit for ‘22. The IRA verbiage says date ‘in service’ so seems possible. I’ll have to ask my cpa.

I think you were not supposed to file until the PRO date year.

But either way yes you just have to file an amended return.

 

[miimura]

Filing an amended return to remove it from 2021 and then claim the same thing in 2022 for a higher credit seems likely to draw some scrutiny. However, I'm not a CPA nor an IRS employee, so what do I know....

 

[yblaser]

Filing an amended return to remove it from 2021 and then claim the same thing in 2022 for a higher credit seems likely to draw some scrutiny. However, I'm not a CPA nor an IRS employee, so what do I know....

I'm in the same boat, installed Oct 21 with PTO in Feb 22. I agree amending your returns could draw some scrutiny in a very gray area with regards to when the system was operational. I would assume you would also have to pay interest and/or a penalty for backing out the credit from 2021. Doesn't seem remotely worth it for $1300 in my case but I highly value my time.

 

[CrazyRabbit]

Remember bill adds 87K irs agents! Don’t want to see you guys behind bars!

 

[komrade]

If I understand this correctly, we installed our solar and got PTO in 2022 (few months ago) but Tesla quoted 26% tax credit when we placed the order in November, 2021. We will claiming the credit when we file our taxes next year. So did the credit now increased to 30% instead of 26%?

Thanks!

 

[GoTzillaR]

If I understand this correctly, we installed our solar and got PTO in 2022 (few months ago) but Tesla quoted 26% tax credit when we placed the order in November, 2021. We will claiming the credit when we file our taxes next year. So did the credit now increased to 30% instead of 26%?

Thanks!

Correct. Enjoy the extra 4%.

 

[itsallaboutme]

This is good news. I have been planning to get solar. I have two Tesla's I just don't know where to begin. Seems like there are a lot of things to know before getting solar. Here is where I am at. I live in NJ I have two Tesla's I have a credit of $1000 left on my electric bill from doing a charger install. I heard something about getting $90 not sure if that figure is correct but that is the amount NJ will pay you for generating electricity. So that would deduct from the monthly cost if you take out a loan. (I know you need to generate something like 1kw (I think). There are so many solar companies to choose from and I am not sure if they're all good for charging teslas. So much info need to know where to start and if it is worth it. Thanks

 

[TBrownTX]

Then I’d say almost certainly not. How could you claim it in two different years?

Exactly why the bill also funds 87,000 new IRS employees.

Tim

 

[TBrownTX]

Correct. Enjoy the extra 4%.

Does anyone know if there are income restrictions on solar, like there are on the EV credits?

Tim