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

Thu Jul 17 15:56:56 PDT 2025

IMO it helps keep those heavily dependent on residential installs busy (aka
alive) beyond 2025, and also somewhat avoids the possible overwhelming rush
to finish 2025 installs before the end of the year.

On Thu, Jul 17, 2025 at 6:33 PM Lou Russo via RE-wrenches <
re-wrenches at lists.re-wrenches.org> wrote:

> 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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-- 

*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
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