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I heard Congress just approved the extension of the 30% tax credit
beyond 2016. Supposedly the rule changed to "begin construction"
from "put into service", but I don't think that takes effect till
2017. Definitely want a tax pro to look the whole thing over,
especially in light of the new rules.<br>
<pre class="moz-signature" cols="72">R.Ray Walters
CTO, Solarray, Inc
Nabcep Certified PV Installer,
Licensed Master Electrician
Solar Design Engineer
303 505-8760</pre>
<div class="moz-cite-prefix">On 12/19/2015 3:31 PM, Gary Willett
wrote:<br>
</div>
<blockquote cite="mid:5675DAAB.6000301@IcarusSolarServices.com"
type="cite">
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KIRK:<br>
<br>
My interpretation is that the tax credit for the situation you
described would need to be claimed on the owner's 2016 tax return
(filed in 2017).<br>
<br>
This advice is worth what you paid for it. I recommend that you
tell your customer to query his tax professional about whether or
not his system is deemed to be Qualified Solar Electric Property
for tax year 2015.<br>
<br>
In previous years, I have provided my clients (system integrator,
installer, owner) with the following when I am asked the question
you got.<br>
<br>
Regards,<br>
<br>
Gary Willett<br>
Icarus Solar Engineering / Services LLC<br>
<br>
---------------------------------------------------------<br>
<blockquote><u>REF: IRS PUB 5695</u><br>
<blockquote><a moz-do-not-send="true"
class="moz-txt-link-freetext"
href="https://www.irs.gov/pub/irs-pdf/i5695.pdf">https://www.irs.gov/pub/irs-pdf/i5695.pdf</a><br>
<small><i>NOTE: Form and Pub 5695 have not yet been released
by the IRS for tax year 2015 (filed in 2016). They may be
affected by the recent extension of the Residential </i><i><u>Energy
Credit</u></i><i>, and the Commercial </i><i><u>Investment
Tax Credit</u></i><i>, by the last minute omnibus
legislation enacted this week. The previous sunset date of
12/31/2016 has been extended for 5 years.</i></small><br>
</blockquote>
<u>Here's the pertinent information from 2014 PUB 5695</u>:<br>
<blockquote>Qualified Solar Electric Property costs <u><i>are
treated as being paid when the original installation of
the item is completed</i></u>. <br>
</blockquote>
<u>Qualified Solar Electric Property Costs</u>:<br>
Include, but not necessarily limited to:<br>
<ol>
<li>Solar modules.</li>
<li>Labor costs for onsite preparation, assembly, and
installation.</li>
<li>Engineering fees, AHJ permitting fees and inspection
costs, developer fees, utility interconnection fees.</li>
<li>Balance of system (BOS) equipment, such as wiring,
inverters, and mounting equipment, batteries, etc.</li>
<li>Sales taxes on eligible expenses.<br>
</li>
</ol>
<u>When Costs are Deductible</u>:<br>
<blockquote>The system owner can claim all the allowable costs
for the PV installation they have paid, but must wait to claim
them in the tax year the Qualified Solar Electric Property is
"<u>placed in service</u>" (system is producing and the owner
is consuming power).<br>
</blockquote>
<u>Placed in Service</u>: <br>
<blockquote>Generally means that construction is completed, the
owner's utility approved connecting the system to the grid,
commissioning tests determined the equipment functions, and
the taxpayer gained ownership and use of the system.<br>
</blockquote>
</blockquote>
[end]<br>
<br>
<div class="moz-cite-prefix">On 12/19/15 8:18 AM, Kirk Herander
wrote:<br>
</div>
<blockquote cite="mid:003901d13a68$165787e0$430697a0$@icloud.com"
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<p class="MsoNormal"><span style="font-size:18.0pt">Hello,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:18.0pt">We may
have discussed this earlier. I have a system in progress
and the owner wants to take the tax credit in 2015.
Trouble is I may not get it commissioned until the first
week in January.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:18.0pt">What is
the actual wording of the tax law? Is there any wiggle
room to take the credit in 2015 if not operational on dec
31?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:18.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:16.0pt">Kirk
Herander<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:16.0pt">Owner|Principal,
VT Solar, LLC <o:p></o:p></span></b></p>
<p class="MsoNormal"><b><i><span style="font-size:16.0pt">Celebrating
our 25<sup>th</sup> Anniversary 1991-2016<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><b><span style="font-size:16.0pt"><a
moz-do-not-send="true" href="www.vermontsolarnow.com"><span
style="color:blue"></span></a><a
moz-do-not-send="true"
class="moz-txt-link-abbreviated"
href="http://www.vermontsolarnow.com"><a class="moz-txt-link-abbreviated" href="http://www.vermontsolarnow.com">www.vermontsolarnow.com</a></a></span><o:p></o:p></b></p>
<p class="MsoNormal"><span style="font-size:16.0pt">dba
Vermont Solar Engineering<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">NABCEP<sup>TM
</sup>2003 Inaugural Certificant<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">VT RE
Incentive Program Partner<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">802.863.1202</span><span
style="font-size:14.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:18.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:18.0pt"><o:p> </o:p></span></p>
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