Solar City model [RE-wrenches]

Sky Sims sky at ecologicalsystems.biz
Mon Apr 14 17:13:37 PDT 2008


First let me say that I'm not a CPA or Tax Attorney. And that you should
consult one before using the tax incentives.

Now that I've got that disclaimer out of the way:

Why in the world would anyone view a commercial entity that purchases a
solar system and places it on a residences roof as being unable to
utilize the ITC?

The very thought of this being unacceptable is repugnant to me and makes
absolutely no sense.

Many residences have home offices and small businesses which they run
out of their residence.

If a company purchases a solar system and places it on a residential
roof with the intention of making money(profit motive) from the solar
system then they are eligible for the tax credit. PERIOD. END OF STORY.
To pretend other wise is akin to saying that a rental company that
purchases equipment that they rent out exclusively to residences is not
eligible to write off the equipment because its intended use is
residential. This is ridiculous on its face. The intended use is for the
company to make money from its use, regardless of where it is placed.
Location is irrelevant, intent and ownership is what matters. 

I really don't understand why people add words and meanings that don't
exist to the legislation.

If someone can point to wording in the tax code that makes these
statements incorrect, please show me. 


Thanks,
Sky Sims
Ecological Systems
www.ecologicalsystems.biz
220 County Road 522
Manalapan, NJ 07726
732-462-3858   fax)732-462-3962


-----Original Message-----
From: Marco Mangelsdorf [mailto:marco at pvthawaii.com] 
Sent: Monday, April 14, 2008 6:16 PM
To: RE-wrenches at topica.com
Subject: RE: Solar City model [RE-wrenches]



I think that I understand what Solar City is doing as far as their new
leasing program for homeowners.  What's not clear to me is how they're
getting away with it. Beyond getting the rebate/buy-down money in states
that offer such programs (perfectly legit), they appear to be
aggregating
all of those installed residential PV kWs and going for the 30 percent
Federal ITC for commercial systems.  This appears to me to be against
the
spirit, if not letter, of the IRS rulings on cases like this.  That is,
Solar City is in fact claiming the commercial ITC credit for residential
projects.  Am I missing something here? 

Marco


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