SGIP check

[BGbreeder]

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...

The article referenced is tax advice from the United Kingdom, probably not something that I would want to rely on in front of the US IRS. But YMMV...

All the best,

BG

 

[CrazyRabbit]

dosn't change the outcome... Tax Basis for the ITC and 1603 Applications | SEIA

"
Effect of Grants, Utility Rebates, RECs and Other Incentives
State rebates, buydowns, grants or other incentives do not decrease the amount eligible for the ITC if the company is required to pay federal income tax on the incentive. The majority of incentives must be reported as income for federal income tax purposes and, therefore, do not decrease the basis for the ITC. However, a limited class of incentives is not taxable; for these incentives, the tax basis must be reduced prior to calculating the credit."

 

[mnsweeps]

@getakey or anyone who got the SGIP check - Does the SGIP ER (or for that matter any category) incentive gets reduced based on the Federal ITC of 26%? So lets say I spend $15000 for 2 Powerwalls, I get only $15000 minus 26% rebate check if all goes well?

 

[h2ofun]

@getakey or anyone who got the SGIP check - Does the SGIP ER (or for that matter any category) incentive gets reduced based on the Federal ITC of 26%? So lets say I spend $15000 for 2 Powerwalls, I get only $15000 minus 26% rebate check if all goes well?

From what I have been told, depends on the contract you signed. Can either be full amount with no ITC or amount minus ITC if you are going to go that route.

 

[mnsweeps]

From what I have been told, depends on the contract you signed. Can either be full amount with no ITC or amount minus ITC if you are going to go that route.

hmmm so why would anyone go with amount minus ITC? who enforces or audits that?

 

[h2ofun]

hmmm so why would anyone go with amount minus ITC? who enforces or audits that?

lets see. For anyone doing SGIP ER signed the ITC contract and it states that they many file a 1099 with the amount. So first you have to claim this full amount as income I believe. But since you got 100% money that was not yours, could you legally try to also claim a write off? What does your tax person say? And if you got audited, what would you say? I started a thread talking directly about this. I think it maybe at the top of the forum now?

I

 

[sunwarriors]

Old thread, but I had a basic question from people who actually received their SGIP rebate checks and tracked timing, does anyone know how long the various steps/wait times were and whether it's just a long waiting game once you hit a particular status?

SGIP |

www.selfgenca.com

I see in the "Reserved" status:
RRF Reserved
RRF Confirmed
All PPM statuses
All ICF statuses

 

[tomuo]

@getakey or anyone who got the SGIP check - Does the SGIP ER (or for that matter any category) incentive gets reduced based on the Federal ITC of 26%? So lets say I spend $15000 for 2 Powerwalls, I get only $15000 minus 26% rebate check if all goes well?

It's the other way around.
When you file your Federal taxes, on the ITC form you reduce the amount you paid for solar by the amount received via SGIP.