aesculus
Still Trying to Figure This All Out
Just keep a log of where each electron charge goes. That should do it.
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New Powerwall Advanced Options [Toggles for charging from and discharging to grid from powerwalls]
- Thread starter dailo
- Start date
I have a feeling the IRS doesn't have the resources right now to comb through your Powerwall logs (not even sure how they would get it).
Tax return backlog is still 'crushing the IRS’ — and taxpayers — as pileup exceeds 21 million, agency watchdog reports
The IRS backlog of tax returns has swelled to over 21 million, despite efforts to clear the pileup, according to a watchdog report.
www.cnbc.com
RKCRLR
Active Member
The other thing is I would rarely grid charge. The only time I would grid charge is if I think there is going to be a power outage and StormWatch doesn't activate.I have a feeling the IRS doesn't have the resources right now to comb through your Powerwall logs (not even sure how they would get it).
Tax return backlog is still 'crushing the IRS’ — and taxpayers — as pileup exceeds 21 million, agency watchdog reports
The IRS backlog of tax returns has swelled to over 21 million, despite efforts to clear the pileup, according to a watchdog report.
Solar investment tax credit to be extended 10 years at 30%
As written in the Inflation Reduction Act of 2022, the tax credit will begin at 30% and step down to 26% in 2033 and 22% in 2034.
pv-magazine-usa.com
"The 30% credit also applies to energy storage whether it is co-located or installed as standalone energy storage. This enables the retrofit of a battery to a solar array while taking advantage of the credit."
If the bill passes, we should be able to turn on Grid Charging without tax implications as batteries would no longer need to be installed with solar panels to receive the tax credit.
aesculus
Still Trying to Figure This All Out
It would seem to me we are stuck with the rules that were in place at the time we bought it. Otherwise why not ask for the differential credit too?
HankLloydRight
No Roads
It's 26% right now, right?
So if I installed solar+PW this year (which I did), and the bill passes, do I get a 26% ITC or 30% ITC?
So if I installed solar+PW this year (which I did), and the bill passes, do I get a 26% ITC or 30% ITC?
30% ITC applies to any solar installations placed into service after 12/31/2021.
that's only if the current bill passes and is signed though, right?
otherwise, as of right now, i believe it's 26%.
correct, only if the bill passes. Otherwise it stays at 26% until the end of the year and goes down to 22% next year.
This is great news. With or without solar, batteries are very good for the grid, but hard to justify economically. So this "discount" on the cost is a good thing.
Thanks for pointing it out. Hope it passes!
SW
HankLloydRight
No Roads
Hypothetically, say we spent $20k on a solar+PW system, and there's a state rebate program for $5k that Tesla filed for and received (or will receive directly). Is the ITC based on the total $20k cost of the system, or the $15k out-of-pocket amount spent? I assume it's the latter, but just want to be sure.
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According to my research, the ITC is paid only on the balance after all rebates. I was in this situation with California's SGIP rebate on Powerwalls.
are you sure? this seems to indicate otherwise (i've been researching the same thing trying to figure out what i can claim at the end of the year, i also did SGIP):
Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics
This guide provides an overview of the federal investment tax credit for those interested in residential solar photovoltaics, or PV.
the two relevant parts...
SGIP is a state run program, not a direct rebate from the utility.
SGIP is a utility rebate, in a program mandated state-wide but administered by each utility individually. Notice all the per-utility accounting on the SGIP website.
Cheers, Wayne
My SGIP check was written by PG&E, not the State, so I treated it as a utility rebate.
There are two tax issues and one SGIP issue here. What I understand is:
1) An SGIP rebate is not considered taxable income.
2) One can take both the income tax credit and an SGIP rebate, but,
3) SGIP rebate is limited to the system cost less any ITC taken.
So, no double dipping.
My recollection is that the application for the SGIP rebate implicitly asks how much ITC you are claiming, and deducts that from the system installed price to calculate the rebate. My PW rebate (equity resiliency budget) was $13,200, i.e. $1 per Wh of storage using the 13.2kWh PW spec from CEC, I think. The total installed cost was $14,900, so I was out only $700.
If I had gone for 2 PW, which I now wish I had, what with PW new Export Everything capability, SGIP would have covered 100% of the cost: The cost would have been around $22K, and the maximum rebate 26.4K, but limited to the $22 cost. Too bad that budget is exhausted!
But I gotta say it sure was swell getting that check from PG&E, of all people.
SGIP is a state CPUC program and budget, only administered by PG&E, so it is not PG&E money. But it was not taxable income, which a lottery winning would be.
True, but SGIP reduces the rebate by the amount of the credit, it seems.
SW
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The CPUC is a state entity. i'm not saying you're wrong, but it'd be nice if they would spell it out directly so we could have accurate information direct from the source and not have to guess at it.
this is probably the best way to define it. mine was from SCE, so you're probably right. i still wish either the utilities themselves or the state would give direct guidance on it, though. i haven't found anything from an official source about which way it's supposed to be classified...just us guessing like we all are here.
this was not the case for me, also equity resiliency. nothing in the SGIP process nor the actual purchase and installation process asked me anything about the federal ITC.
I don't believe that is or was ever the case. If I recall, for large scale installs (3+ PWs), possibly with some other specifiers I'm forgetting, there were two different SGIP rates, one if you are claiming the ITC, and one if you weren't. In either case, the ITC was based on the (cost - SGIP), and the SGIP rebate was not taxable.
Cheers, Wayne
It is right there on my PG&E/SGIP Incentive Claim Form, which they had me Docusign, page 4 of 6:
Project Finance
Total Eligible Project Cost (TEPC): $13,900.00 Ineligible Project Cost: 0
...Taking Federal Investment Tax Credits No (ITC):
ITC as a % of TEPC: %
I expect this is clear in the Handbook as well, a rabbit hole I spent a fair amount of time exploring back when I was Semper Solaris's first (of very many) applicants for this remarkable, frankly unbelievable, largess, but one I'm not tempted to revisit now to clarify this point.
The question would be, did you take the ITC, and did SGIP cover all or nearly all of your system's cost. If both are true, you may not want to say so publicly, though I doubt IRS or PGE/CPUC reads TMC.
I chose not to take the ITC even though it would have saved me $700, because the tax credit would take at least months, probably years to realize because I am still burning down the ITC from my 2016 solar installation. That is to say, the cash flow was better for me this way.
SW