[RE-wrenches] Residential credits: buy now, install later…?????

Thu Jul 17 15:30:51 PDT 2025

But who wants to take all that income with no expenses for 2025? I might do
it for a handful but not too many.
The accrual detail is crucial.
Time to call the CPA!

Aloha,
Lou Russo
Spree Solar Systems LLC
C-34322

On Thu, Jul 17, 2025 at 12:20 PM Marco Mangelsdorf via RE-wrenches <
re-wrenches at lists.re-wrenches.org> wrote:

> That's my/our understanding as well, Kirk.
>
> What's still unclear to me is whether any unused tax credit $$ accrued in
> 2025 can be rolled forward as was possible in previous years.
>
> Any opinions out there on this?
>
> Mahalo,
> marco
>
> On Thu, Jul 17, 2025 at 10:08 AM Kirk Herander via RE-wrenches <
> re-wrenches at lists.re-wrenches.org> wrote:
>
>>
>> Residential tax credit:
>>
>>
>> https://pv-magazine-usa.us13.list-manage.com/track/click?u=2790e780a1533f4bc05c8679a&id=
>> <https://pv-magazine-usa.us13.list-manage.com/track/click?u=2790e780a1533f4bc05c8679a&id=f0c9594dad&e=08687aaaf2>
>>
>> Apparently, the bills wording allows a full purchase or procurement of a
>> residential system to be eligible for the tax credits if purchased before
>> they expire at the end of 2025. Systems do not need to be installed before
>> the end of the year.
>>
>> If accurate, no “placed in service” 2025 deadline.
>>
>> “With respect to the Jan 2026 end of Section 25D(residential tax credit),
>> experts agree that the determination of whether a homeowner qualifies has
>> shifted from the previous “placed in service” test to the bill’s new
>> “expenditures made” test.”
>>
>> “If the homeowner pays for the installation in 2025, they could lock in
>> the credit, even if the system is placed in service later,” said Bryen
>> Alperin, Partner & Managing Director at Foss & Company."
>>
>>
>>
>>
>>
>>
>> *Kirk Herander / **kirkh at vermont.solar <kirkh at vermont.solar>*
>>
>> *Owner|Principal, VT Solar, LLC*
>>
>> *Celebrating our 34st Anniversary 1991-2025!!*
>>
>> dba Vermont Solar Engineering
>>
>> 802.559.1225
>>
>>
>> On Thu, Jul 17, 2025 at 11:04 AM Harry Mahon via RE-wrenches <
>> re-wrenches at lists.re-wrenches.org> wrote:
>>
>>> This might be related to the technical correction to wording of 48E on
>>> percentages of domestic content??
>>>
>>>
>>>
>>>    - Correction to Domestic Content Percentages Under 48E: The domestic
>>>    content applicable percentage under 48E for qualified facilities and energy
>>>    storage technology would be revised to match current 45Y as follows:
>>>       - 40% (or 20% for offshore wind) if construction begins before
>>>       June 16, 2025;
>>>       - 45% (or 27.5% for offshore wind) if construction begins after
>>>       June 16, 2025, and before Jan. 1, 2026;
>>>       - 50% (or 35% for offshore wind) if construction begins during
>>>       2026; and
>>>       - 55% if construction begins after Dec. 31, 2026.
>>>
>>>
>>>
>>>
>>>
>>> This content percentage wont matter to residential system owners – 25D
>>> still goes away at EOY, no domestic content requirements...
>>>
>>> Only folks leasing systems can get the credit, THEN domestic content
>>> matters.  PV Magazine has good summary article.
>>>
>>>
>>> https://pv-magazine-usa.com/2025/07/10/what-the-budget-bill-means-for-energy-storage-tax-credit-eligibility/
>>>
>>>
>>>
>>> Wannabe residential battery owners will likely feel the most immediate
>>> impact of the OBBB.
>>>
>>> Updates to the 25D residential solar tax credit, which covers solar
>>> panels, solar water heaters and related property like home battery storage
>>> systems, have significantly shortened the timeline for homeowners to access
>>> the credit.
>>>
>>> Now, home batteries will only qualify for the 30% tax credit if they’re
>>> purchased and installed by the end of the year before the credit phases out
>>> entirely.
>>>
>>> There is a bright spot: residential systems leased from third parties
>>> will remain eligible for tax credits beyond 2025, as they rely on 48E
>>> instead of 25D.
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> *Michael Mahon* (he/him)
>>> Solar Academy Manager  |  SMA America
>>>
>>> +1 916 918 9412
>>> SMA America <https://www.sma-america.com/> | Solar Academy
>>> <https://solaracademy.sma.de/en/> | TechTip Channel
>>> <https://www.youtube.com/playlist?list=PLoiOll7F4i-_Wc4JVN8ga2x2vxc8xews_>
>>> | Upcoming Academy Trainings
>>> <https://solaracademy.sma.de/en/courses.html?filter%5b1%5d=English&filter%5b2%5d=United%20States>
>>>
>>>
>>> <https://www.sma-america.com/products/hybrid-inverters/sunny-boy-smart-energy>
>>>
>>> This email and any attachments thereto may contain SMA America, LLC
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>>>
>>> *From:* RE-wrenches <re-wrenches-bounces at lists.re-wrenches.org> *On
>>> Behalf Of *scot.arey--- via RE-wrenches
>>> *Sent:* Thursday, July 17, 2025 8:11 AM
>>> *To:* RE-wrenches <re-wrenches at lists.re-wrenches.org>
>>> *Cc:* scot.arey at solarcentex.com
>>> *Subject:* [RE-wrenches] Is there a domestic content reqt for batteries
>>> effective now? For Residential?
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> I consider myself mostly pretty aware of policy issues that effect
>>> business but this paragraph in a Seeking Alpha investment article caught my
>>> eye.  Is there a new domestic content reqt for batteries in residential
>>> installations?
>>>
>>>
>>>
>>> "The higher domestic content batteries comply with the new requirement
>>> in the U.S. federal budget law, which retroactively enforces a 45%
>>> U.S.-sourced materials threshold for solar and battery products starting
>>> June 16, 2025."
>>> https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1
>>>
>>>
>>> <https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1>
>>>
>>> Enphase Energy begins shipments of IQ Battery 5P with higher domestic
>>> content - Seeking Alpha
>>> <https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1>
>>>
>>> Discover Enphase Energy's new IQ Battery 5P with increased U.S.-sourced
>>> materials, complying with updated federal standards.
>>>
>>> seekingalpha.com
>>>
>>>
>>>
>>> Wanting to make sure I'm not setting up this years customers for issues
>>> getting the 30% Federal tax credit/
>>>
>>>
>>>
>>>
>>>
>>> *Howard "Scot" Arey*
>>>
>>> *Owner, Solar CenTex*
>>>
>>>
>>>
>>> NABCEP PV Installation Professional
>>>
>>> TECL 29755
>>>
>>> 254-300-1228
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