[RE-wrenches] Question about Solar Tax Credit basis

[Howie Michaelson]

Hi All,

I know this question has gone around quite a bit before, but somehow I
can't find the discussion in the archives.  What are folks experience with
having the tax basis for the 30% tax credit (either residential or
commercial) incorporate some of the cost of a building that was built
specifically (in part) to hold a solar array (e.g. a farm shed that is
designed and built to hold the array, but houses farm equipment as well)
instead of putting in a ground mount.  I thought it was acceptable to
claim as part of the tax credit basis the portion of the building cost
that would have been used on the alternate racking system.  Here is an
excerpt from "SEIA Guide to Federal Tax Incentives for Solar Energy
Version 1.2" which could be read as supporting this position:

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4. Tax Credit Basis
The “tax credit basis” is the value of the property that you use when
calculating the amount of the credit. Item 3 in the discussion of the
commercial tax credit contains a definition of the tax credit basis for
companies. For residential systems, it appears that the majority of direct
contractor labor costs to install the equipment are included in the tax
credit basis. (This includes site preparation, assembly and original
installation, and piping or wiring work to connect the equipment to the
individual's home.) When there is spending on work tied both to solar
equipment and to other construction -- for example, where the solar
equipment is being installed during construction of a new building, the
construction costs will have to be allocated according to each activity.

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Thanks,
Howie
-- 
Howie Michaelson
NABCEP Certified Solar PV Installer™

Catamount Solar, LLC
Renewable Energy Systems Sales and Service
VT Solar Electric & Hot Water Incentive Partner
http://www.CatamountSolar.com
802-272-0004