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

Kirk Herander kirkh at vermont.solar
Fri Jul 18 10:25:34 PDT 2025 

So what is the text of subparagraph (B)?? Obviously there is a
difference of opinion amongst expert interpreters.



On Fri, Jul 18, 2025 at 11:43 AM Harry Mahon via RE-wrenches <
re-wrenches at lists.re-wrenches.org> wrote:

> Unfortunately I think the actual language of 25D defines expenditure
> differently than an exchange of money, and would imagine it will be
> enforced by this administration...
>
>
>
> From
> https://www.solarinsure.com/final-changes-to-solar-tax-credit-from-h-r-1
> and quoted is directly from language of 25D (I think the callout from 25D
> is actually (e)(8)(A) ):
>
>
>
> An interesting note with the amendment is the language “with expenditures
> made after December 31st”. Some have postulated that the change in language
> here could mean that homeowners could take the credit if they simply paid
> for the system before the end of 2025. This is clarified in 26 USC
> 25D(8)(A)
> <https://uscode.house.gov/view.xhtml?req=(title:26%20section:25D%20edition:prelim)>
> :
>
>
>
> *“Except as provided in subparagraph (B), an expenditure with respect to
> an item shall be treated as made when the original installation of the item
> is completed.“*
>
>
>
> Unfortunately for homeowners, this means that the system does need to be
> fully installed by the end of 2025 in order to still claim the credit.
>
>
>
> ----------
>
>
> *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
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>
>
> <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 *Amos Post via RE-wrenches
> *Sent:* Friday, July 18, 2025 9:26 AM
> *To:* RE-wrenches <re-wrenches at lists.re-wrenches.org>
> *Cc:* Amos Post <integrityenergy101 at gmail.com>
> *Subject:* Re: [RE-wrenches] Residential credits: buy now, install
> later…?????
>
>
>
> If this is the case, when would the system need to be installed by???
> There must be a deadline…?
>
>
>
>        Amos Post
>    Integrity Energy
>   W 802.763.7023
>    C 802.291.2188
>     ienergyVT.com <http://www.ienergyvt.com/>
>
>         Facebook <https://www.facebook.com/integrityenergyllp?ref=hl>
>
>
>
> On Jul 17, 2025, at 7:39 PM, Howie Michaelson via RE-wrenches <
> re-wrenches at lists.re-wrenches.org> wrote:
>
>
>
> If this is accurate, that will make a big difference.  I'm getting
> overwhelmed with requests for systems.
>
>
>
> Howie
>
>
>
> On Thu, Jul 17, 2025, 4:08 PM 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>
>
> <image001.jpg>
> <https://www.sma-america.com/products/hybrid-inverters/sunny-boy-smart-energy>
>
> This email and any attachments thereto may contain SMA America, LLC
> confidential, privileged and private material for the sole use of the
> intended recipient. Any review, copying, or distribution of this email (or
> any attachments thereto) by others is strictly prohibited. If you are not
> the intended recipient, please contact the sender immediately and
> permanently delete the original and any copies of this email and any
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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.
> <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>
>
> *seekingalpha.com*
> <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>
>
> Wanting to make sure I'm not setting up this years customers for issues
> getting the 30% Federal tax credit/
> <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>
>
>
> <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>
>
> *Howard "Scot" Arey
> <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>*
>
> *Owner, Solar CenTex
> <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>
>
> NABCEP PV Installation Professional
> <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>
>
> TECL 29755
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>
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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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