SGIP check

[getakey]

My PW install was back in Dec 2019. I already had solar. I didn't get PTO until May 2020 although system was operating since solar was already installed. I finally got notication today that the SGIP check was sent. 11 months from install. 6 months from PTO

 

[SD2020]

Thanks for sharing. And that sounds a LONG wait. Hope the government will speed up a little.

 

[SD2020]

My PW install was back in Dec 2019. I already had solar. I didn't get PTO until May 2020 although system was operating since solar was already installed. I finally got notication today that the SGIP check was sent. 11 months from install. 6 months from PTO

Did they email you to let you know that check was sent?

 

[h2ofun]

My PW install was back in Dec 2019. I already had solar. I didn't get PTO until May 2020 although system was operating since solar was already installed. I finally got notication today that the SGIP check was sent. 11 months from install. 6 months from PTO

I had heard 6 to 9 months, nuts

 

[getakey]

Did they email you to let you know that check was sent?

yes

 

[SD2020]

yes

My PW was installed today. Waiting for the check.

 

[jboy210]

What is the SGIP plan and does it apply to home owners? When I google it for PG&E it returns a link to some plan for non-residential small and medium size business.

 

[SD2020]

What is the SGIP plan and does it apply to home owners? When I google it for PG&E it returns a link to some plan for non-residential small and medium size business.

It was avaiable for residential. But it seems the program has changed and it is much more difficult to get it now.

 

[holeydonut]

If someone qualifies for the Equity (low income) program, PG&E has a pilot program so the homeowner does not pay anything up front. They essentially get a battery "for free" since the SGIP subsidizes the battery, and PG&E subsidizes the working capital (the gap between the initial cost and the SGIP rebate many months later).

PG&E Launches New Financial Assistance Pilot for Eligible Customers Installing Home Battery Storage Systems

 

[h2ofun]

If someone qualifies for the Equity (low income) program, PG&E has a pilot program so the homeowner does not pay anything up front. They essentially get a battery "for free" since the SGIP subsidizes the battery, and PG&E subsidizes the working capital (the gap between the initial cost and the SGIP rebate many months later).

PG&E Launches New Financial Assistance Pilot for Eligible Customers Installing Home Battery Storage Systems

Again, I see no mention of the tax liability for this "free" stuff

 

[jboy210]

If someone qualifies for the Equity (low income) program, PG&E has a pilot program so the homeowner does not pay anything up front. They essentially get a battery "for free" since the SGIP subsidizes the battery, and PG&E subsidizes the working capital (the gap between the initial cost and the SGIP rebate many months later).

PG&E Launches New Financial Assistance Pilot for Eligible Customers Installing Home Battery Storage Systems

Thanks. We would not qualify for this on several counts. The only thing we hit is having our power shutoff for days during multiple PSPS events.

Strangely nearby we have a Zone 3 area. It is in the middle of a block and consists of 10 houses in a subdivision with 100 houses. The only reason I can see they are different is a walking path runs behind some of the homes. But to burn these homes, any fire would have to burn through many other homes not in the zone. Seems very abitrary.

 

[holeydonut]

Again, I see no mention of the tax liability for this "free" stuff

Did you give Tesla or PG&E your SSN? They can't issue a 1099 MISC if they don't know your tax info.

 

[h2ofun]

Did you give Tesla or PG&E your SSN? They can't issue a 1099 MISC if they don't know your tax info.

do not remember, but somewhere along the line, I assume I have . Oh well nothing in life is free

 

[Laketime]

Most of the time these are done as rebates or grants which would not have a tax liability. When it is won via a public contest or given by a company you work for it will usually be 1099'd.

 

[CrazyRabbit]

Grant Income – Green Accountancy

SGIP is a distibuted generation program for which the utility has control to turn on your powerwall to power the grid. So you are doing work and the GRANT IS TAXABLE INCOME.

Paying taxes isn't all bad, at least it means you have income, things can be worse...

 

[wjgjr]

Most of the time these are done as rebates or grants which would not have a tax liability. When it is won via a public contest or given by a company you work for it will usually be 1099'd.

As @CrazyRabbit noted, grants can be (and I think state grants usually are) taxable income on a federal level, because you are actually getting cash, and the IRS wants its cut. There can be specific exceptions, and apparently (I have not dug into this since I did not have any) utility rebates are one.

But the debate is actually not that big of a deal at present, because if you do not treat the grant/rebate as taxable income, you need to reduce the amount of your ITC claim. Which one is more beneficial would depend on your tax bracket and the current year's ITC credit percent, but the choice for rebates and grants is not typically between tax or no tax but between paying the income tax and getting ITC credit or paying no tax but not getting ITC credit.

And I will note that state tax credits are also handled differently than grants and rebates, and are potentially the best type of incentive because of how the tax treatment of them works.

 

[h2ofun]

As @CrazyRabbit noted, grants can be (and I think state grants usually are) taxable income on a federal level, because you are actually getting cash, and the IRS wants its cut. There can be specific exceptions, and apparently (I have not dug into this since I did not have any) utility rebates are one.

But the debate is actually not that big of a deal at present, because if you do not treat the grant/rebate as taxable income, you need to reduce the amount of your ITC claim. Which one is more beneficial would depend on your tax bracket and the current year's ITC credit percent, but the choice for rebates and grants is not typically between tax or no tax but between paying the income tax and getting ITC credit or paying no tax but not getting ITC credit.

And I will note that state tax credits are also handled differently than grants and rebates, and are potentially the best type of incentive because of how the tax treatment of them works.

My question is the ER "grant", which is 100% funded by SGIP, and therefore is not ITC claim.

Has anyone gotten a check back from SGIP for an ER grant for the 100% cost coverage? If so, do you believe you will also receive a 1099 for taxes?

 

[wjgjr]

My question is the ER "grant", which is 100% funded by SGIP, and therefore is not ITC claim.

Has anyone gotten a check back from SGIP for an ER grant for the 100% cost coverage? If so, do you believe you will also receive a 1099 for taxes?

Whether or not it is eligible for the ITC does not change whether the grant is taxable, just how much benefit is lost if it is. (And, technically, whether or not you receive a 1099 doesn't change whether it is actually taxable, just whether somebody reported the amount to the IRS.)

Who actually gives you the grant/rebate - is it your utility or the state? I know SGIP is a state program, but if you are actually applying to and getting a check from your utility (and not from the state,) which sounds like the case, that potentially changes the treatment. The tax code states:

[QUOTE]Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.[/QUOTE]
26 U.S. Code § 136 - Energy conservation subsidies provided by public utilities (It also goes on include a "denial of double benefit", which is likely applicable to those with a potential ITC claim.)

I admit I also do not know if the ER program qualifies under the energy conservation definition, but if it does, and if you get a check from your utility rather than from the state, that may be enough to avoid taxes (but a tax advisor would be able to provide a more authoritative answer.)

 

[h2ofun]

Whether or not it is eligible for the ITC does not change whether the grant is taxable, just how much benefit is lost if it is. (And, technically, whether or not you receive a 1099 doesn't change whether it is actually taxable, just whether somebody reported the amount to the IRS.)

Who actually gives you the grant/rebate - is it your utility or the state? I know SGIP is a state program, but if you are actually applying to and getting a check from your utility (and not from the state,) which sounds like the case, that potentially changes the treatment. The tax code states:

[QUOTE]Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.

26 U.S. Code § 136 - Energy conservation subsidies provided by public utilities (It also goes on include a "denial of double benefit", which is likely applicable to those with a potential ITC claim.)

I admit I also do not know if the ER program qualifies under the energy conservation definition, but if it does, and if you get a check from your utility rather than from the state, that may be enough to avoid taxes (but a tax advisor would be able to provide a more authoritative answer.)[/QUOTE]

Great info. Seems it starts with if one gets a 1099 form, since if ones, this implies reports to the government and taxable?
I have attached the ITC form that ER folks sign. How do you read the working under taxes?

Tax Liability: I understand that the incentives may be taxable and if greater than $600, may be reported to the IRS unless I am exempt from reporting. The Program Administrator may report such rebate payments on IRS Form 1099 unless I have checked corporation or exempt tax status above. You are urged to consult your tax adviser concerning the taxability of rebates. Program Administrator is not responsible for any taxes that may be imposed on you or your business as a result of your receipt of this rebate

 

[h2ofun]

Whether or not it is eligible for the ITC does not change whether the grant is taxable, just how much benefit is lost if it is. (And, technically, whether or not you receive a 1099 doesn't change whether it is actually taxable, just whether somebody reported the amount to the IRS.)

Who actually gives you the grant/rebate - is it your utility or the state? I know SGIP is a state program, but if you are actually applying to and getting a check from your utility (and not from the state,) which sounds like the case, that potentially changes the treatment. The tax code states:

[QUOTE]Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.

26 U.S. Code § 136 - Energy conservation subsidies provided by public utilities (It also goes on include a "denial of double benefit", which is likely applicable to those with a potential ITC claim.)

I admit I also do not know if the ER program qualifies under the energy conservation definition, but if it does, and if you get a check from your utility rather than from the state, that may be enough to avoid taxes (but a tax advisor would be able to provide a more authoritative answer.)[/QUOTE]

Just sent some of these questions off to my tax guy to see if he has any thoughts.