[RE-wrenches] Resi tax credit

[Jason Szumlanski]

I agree, but I have a client who is a tax attorney and even specializes in
energy-related tax credits, and he is insisting that he wants to pay me in
December for a January battery installation. He is going to take the tax
credit. Ask ten attorneys and expect a dozen answers!


Jason Szumlanski
Principal Solar Designer | Florida Solar Design Group
NABCEP Certified Solar Professional (PVIP)
Florida State Certified Solar Contractor CVC56956
Florida Certified Electrical Contractor EC13013208


On Mon, Aug 18, 2025 at 2:35 PM Harry Mahon via RE-wrenches <
re-wrenches at lists.re-wrenches.org> wrote:

> I would seek guidance from a tax attorney as noted.
>
>
>
> I do not believe that is correct information for residential non-TPO
> systems if the implication is they can be placed in service AFTER Dec 31,
> 2025 if 5% spent before that date – the recent Treasury guidance is NOT
> applicable to 25D tax credits, only 45Y and 48E.
>
>
>
> Sections 45Y and 48E Beginning of Construction Notice
> <https://www.irs.gov/pub/irs-drop/n-25-42.pdf>
>
>
>
> 25D eligibility goes away completely on Dec 31 2025, and system must be
> operational (either placed in service or *possibly* tested operational
> but waiting for PTO) by then to claim credit.
>
>
>
> Best regards –
>
> Mike
>
>
>
>
> *Michael Mahon* (he/him)
> Solar Academy Manager  |  SMA America
>
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>
> *From:* RE-wrenches <re-wrenches-bounces at lists.re-wrenches.org> *On
> Behalf Of *Kristopher Schmid via RE-wrenches
> *Sent:* Monday, August 18, 2025 12:14 PM
> *To:* RE-wrenches <re-wrenches at lists.re-wrenches.org>
> *Cc:* Kristopher Schmid <solman at legacysolar.com>
> *Subject:* [RE-wrenches] Resi tax credit
>
>
>
> Hi All,
>
>
>
> Just received the following in an email from my local state solar lobbying
> group.
>
>
>
> ---snip---
>
> *Solar projects 1.5 MW (AC) or less remain eligible to use the 5% Safe
> Harbor rule.*
>
> That means:
>
> If at least 5% of project costs are incurred (equipment deposits, racking,
> inverters, modules) before December 31, 2025, the project qualifies as
> “begun construction.”
>
> Alternatively, starting physical work—like installing racks on a
> rooftop—also establishes eligibility.
>
> Once placed in service, these projects may be eligible the full 30%
> Residential Clean Energy Credit. *Contact a tax attorney for further
> details.*
>
> ---snip---
>
>
>
> Has anyone heard a similar interpretation recently?  A little scary that
> they say "may be eligible".
>
>
>
> Thanks,
>
> Kris
>
>
>
>
>
>
>
> Shine On!
>
> Kris Schmid
> Legacy Solar, LLC
> 137 West 1st Avenue
> Luck, WI 54853
> www.legacysolar.com
> 715-653-4295
> NABCEP Certified PV Installation Professional
> Licensed Wisconsin Master Electrician
> BSEE
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