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Tax credit questions
- Thread starter famelec
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- Tesla Energy
I'm pretty sure if you hit the Powerball you won't be getting any credits, they will likely take half right off the top!
Now, the PowerWALL 2 installed with the solar panels, inverters etc would all count as a "system". Tax implications are individual as are any state credits.
Now, the PowerWALL 2 installed with the solar panels, inverters etc would all count as a "system". Tax implications are individual as are any state credits.
I'm not so sure but I found some guidelines about installing solar PV generally do not reduce federal tax credits. Check this for your reference: http://solaroutreach.org/wp-content/uploads/2015/03/ResidentialITC_Factsheet_Final.pdf
On the last page of this link; under "Can you use the solar tax credit for batteries", it states that "if you install a battery as part of your solar energy system" it is eligible.
This isn't an IRS document but it seems like they have researched it. Has anyone looked into the question of adding the batteries later?
Solar Batteries: What Will They Cost? | EnergySage
This isn't an IRS document but it seems like they have researched it. Has anyone looked into the question of adding the batteries later?
Solar Batteries: What Will They Cost? | EnergySage
I also thought that solar had to be installed concurrently. However, I found that the ITC can be applied to batteries as long as they are charged 75% or more from solar. It doesn't matter when the solar was installed. Also, the ITC depends on the percentage of solar charging. For example, if you charge 90% from solar, you get a tax credit equal to 90% of 30% of your net cost after other incentives.
Thanks miimura,
I'm wondering how one would verify what percentage of battery charge was/is by solar. Since I usually have an excess of solar power every month except January and February; the solar would seem to provide at least 83% of the battery charge. My "tru-up" resets at the end of the December bill cycle. I usually have a little excess on the December bill for which I get credit at the wholesale rate $.034/kWh.
Can you refer me to the source of the information you provided. That will be the "make or break" decision regarding my Powerwall purchase. I have had a site survey and a quote from Tesla / Solar City.
I'm wondering how one would verify what percentage of battery charge was/is by solar. Since I usually have an excess of solar power every month except January and February; the solar would seem to provide at least 83% of the battery charge. My "tru-up" resets at the end of the December bill cycle. I usually have a little excess on the December bill for which I get credit at the wholesale rate $.034/kWh.
Can you refer me to the source of the information you provided. That will be the "make or break" decision regarding my Powerwall purchase. I have had a site survey and a quote from Tesla / Solar City.
This is a good article that seems to dispense clear facts.
When is Energy Storage Eligible for the 30 Percent ITC?
The solar percentage on a PowerWall would be completely determined by the charging strategy implemented in the PowerWall. Even when you don't have a "surplus" of solar, the battery could be charged completely from solar. The PowerWall could communicate directly with your solar inverters, or the installation could put CTs directly on the solar circuits so that Tesla can collect the data by themselves. This is one reason that people want to know how these settings are managed in the PowerWall 2. Apparently the Tesla app does not expose any of these settings and only shows you the status and history.
When is Energy Storage Eligible for the 30 Percent ITC?
The solar percentage on a PowerWall would be completely determined by the charging strategy implemented in the PowerWall. Even when you don't have a "surplus" of solar, the battery could be charged completely from solar. The PowerWall could communicate directly with your solar inverters, or the installation could put CTs directly on the solar circuits so that Tesla can collect the data by themselves. This is one reason that people want to know how these settings are managed in the PowerWall 2. Apparently the Tesla app does not expose any of these settings and only shows you the status and history.
Federal tax credit of 30% goes down to 26% at end of 2019 for US residents
Electric Vehicle & Solar Incentives
AND
DSIRE
IMPORTANT CAVEAT ON BATTERIES
""Energy Storage
The federal tax code does not explicitly reference energy storage, so stand-alone energy storage systems do not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems.
In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit.
It is important to note that
Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent.
Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. ""
So batteries may or may not be eligible for tax credit
Electric Vehicle & Solar Incentives
AND
DSIRE
IMPORTANT CAVEAT ON BATTERIES
""Energy Storage
The federal tax code does not explicitly reference energy storage, so stand-alone energy storage systems do not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems.
In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit.
It is important to note that
Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent.
Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. ""
So batteries may or may not be eligible for tax credit
My understanding is that the 75% rule and related proration rules only apply to commercial storage installations. Instead, the rules for residential storage are “all or nothing” — if batteries charged exclusively from renewable energy, 30% ITC is available; otherwise not eligible for any ITC. So this is why Tesla enforces only solar charging except for exceptional small periods of time. But the rest I agree with — I am installing Powerwall to existing solar and according to what ITC docs say and Tesla says, the full system cost is eligible given the current Powerwall programming.
Here is a glimpse of the future (2019 is last year before ITC begins phase-out):
hodad66
Member
You are correct. The 75% rule only applies to commercial installations. Residential battery installations must be exclusively charged by on-site renewable energy. My post you quoted was from 2017. If anyone wants a copy of the Private Letter Ruling for Residential Battery Storage systems installed separately from solar, I have a copy. Someone told me on another forum that the ruling was requested by Lyndon Rive expressly for the purpose of clarifying the ITC rules for residential Powerwall 2 installation with existing solar.
@miimura
I definitely would like a copy of the ruling as I’m installing a PW on an existing system
Thank you for your help
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