[RE-wrenches] ITC for 2009

[Peter Parrish]

I am a little put off by CALSEIA's standard disclaimer that they do not give
tax advice. Of course they don't, and shouldn't. But this doesn't mean that
their membership's only recourse is to individually seek out legal/tax
opinions. What is to prevent CALSEIA from hiring a tax attorney to render an
expert opinion on this matter?
 
I tell my clients that there are two things in this world that I have failed
to understand (given the time and inclination to do so): one is string
theory (it's not even "wrong") and the other is the Federal Tax Code. I can
parse an English sentence as well as the average guy but I do not come away
with a definitive take on the matter.

If the "current tax code" says, "an expenditure with respect to an item
shall be treated as made when the original installation of the item is
completed". If it's a water heater, low flush toilet or some attic
insulation, fine. When the contractor installs it and it works, the item is
completed. But in the case of a grid-tied PV system neither installation nor
permit sign-off renders the installation complete. 

To take the Los Angeles Department of Water and Power as an example: post
inspection by the Department of Building and Safety, a group of solar
engineers (from the rebate office) come to the job site and review the
installation for compliance with the rebate application and other
requirements; another group checks to see if the net metering agreement has
been properly executed; yet another individual comes out and locks out the
AC disconnect, and finally another group comes out and installs a net meter,
and removes the lock. During this whole process, the contractor and the
customer are repeatedly warned not to turn on the PV system. I would argue
that this sequence of events and the prohibition against putting the system
into use - renders completion to be effective the date the LADWP plugs in a
net meter and removes the lock on the disconnect and switches the disconnect
on. 

In any event, I am not a tax attorney or tax preparer, and my opinion is not
worth a tinker's dam. This scenario needs to be explained to an expert and
their advice solicited. There might even be case law to bring to bear on the
subject.

Does anyone else think that CALSEIA or SEIA for that matter should obtain a
legal opinion on behalf their membership?

- Peter

Peter T. Parrish, Ph.D., President
California Solar Engineering, Inc.
820 Cynthia Ave., Los Angeles, CA 90065
Ph 323-258-8883, Mobile 323-839-6108, Fax 323-258-8885
CA Lic. 854779, NABCEP Cert. 031806-26
peter.parrish at calsolareng.com