IRS and 1099's [RE-wrenches]

[Graham Owen]

Fellow Wrenches,

Since my customers typically pay me in full for their PV installation a
question has arisen numerous times, will the homeowner have to pay
Federal income tax on the subsidy since they get a 1099.

The answer is NO!  Below is a link to the IRS page that explains why
not.  Below the link is text copied and pasted from this IRS
publication.


http://www.irs.gov/formspubs/page/0,,id=11910,00.html


Energy conservation measure. This includes installations or
modifications that are primarily designed to reduce consumption of
electricity or natural gas, or improve the management of energy demand. 

Energy conservation subsidies. You can exclude from gross income any
subsidy provided, either directly or indirectly, by public utilities for
the purchase or installation of an energy conservation measure for a
dwelling unit. If the property is not a dwelling unit (nonresidential
property), you can exclude 50% of the subsidy, but only for amounts
received under a written contract in effect on September 13, 1995, and
at all times thereafter. 

Energy conservation measure. This includes installations or
modifications that are primarily designed to reduce consumption of
electricity or natural gas, or improve the management of energy demand. 

Dwelling unit. This includes a house, apartment, condominium, mobile
home, boat, or similar property. If a building or structure contains
both dwelling and other units, any subsidy must be properly allocated.

Graham Owen
GO Solar

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