Solar Tax Credit

[Oswegatchie]

I searched but could not find any info on the forum about this, so sorry if it has already been a thread. Has anyone took advantage of the ITC (Income tax credit) for solar? It seems as though you can take the credit on a first or second home, which includes RV's. It also seems to come off your tax liability, not your taxable income, which could be fairly substantial. It is 30% of the solar investment, so if you spend $3000 on your total solar system, you would save $1000 on your taxes in that tax year. At least I think that's how it works.

 

[CautionToTheWind]

Federal solar and wind tax credits information https://www.wholesalesolar.com/solar-information/federal-tax-credit

Federal Tax Credits in effect through 2021

EDIT: 12/2015

In December 2015, the Consolidated Appropriations Act extended the 30% credit for residential solar to the end of 2019.  It then steps down over two years and expires completely at the end of 2021.

30% for systems placed in service by 12/31/2019
26% for systems placed in service after 12/31/2019 and before 01/01/2021
22% for systems placed in service after 12/31/2020 and before 01/01/2022
There is no maximum credit for systems placed in service after 2008.
Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
The home served by the system does not have to be the taxpayer’s principal residence.

 

[Travelmonkey]

I believe you need to be tied into the grid for receive tax credit. They want the power you generate to be used by others. I'm not sure where I read this so feel free to correct me.

 

[Oswegatchie]

I believe you need to be tied into the grid for receive tax credit.  They want the power you generate to be used by others.  I'm not sure where I read this so feel free to correct me.

I have read the federal guidelines and don't see that requirement. I just checked the state of NY though, where we are for 2 more months, and they do require you to be tied to the grid and metered to get their credit.

 

[KathyC]

I believe you need to be tied into the grid for receive tax credit.  They want the power you generate to be used by others.  I'm not sure where I read this so feel free to correct me.

According to the linked info. from Wholesale Solar:

"Solar System for RV and boat that has been accepted by the IRS as a second home for tax purposes"

 

[Weight]

Some states with their own credits, want to be sure the solar is for that state. The FEDs want it to be in the USA

 

[Travelmonkey]

Apologies for my incorrect information. I don't see anything either that states grid tie in requirement. Here are the instructions for the Fed tax form needed to file for the tax credit. https://www.irs.gov/pub/irs-pdf/i5695.pdf

We just bought a new RV and if we add solar to it, we'll look into this credit.