Roof Included In Solar Credit

The solar pv system is new or being used for the first time.

Roof included in solar credit.

It seems the roof would be an energy credit limited to the 500 and the 30 would only apply to the solar portions. The eligible cost can also include any direct site preparation such as small repairs to the roof surface or a tree removal for sun optimization. If you end up with a bigger credit than you have income tax due a 3 000 credit on a 2 500 tax bill for instance you can t use the credit to get money back from the irs. For commercial solar energy under sec.

You claim this credit on part ii of form 5695 and the credit is 10 of your cost with a maximum credit of 500. Filing requirements for solar credits. 1 48 9 k to be included in calculating the energy credit when adding a new roof and solar panels to the property. And he will happily get to include the repairs along with the solar job when he files his 2017 returns.

Thanks for the great question and all the best to you on your new roof project. 48 one may reasonably assume that the irs would take a position consistent with letter ruling 201523014 and only permit the incremental costs as defined in regs. To claim the credit you must file irs form 5695 as part of your tax return. The credit can only be claimed on the original installation of the solar equipment.

I am struggling with advising my clients to proceed with the project since his decision is based on including the roof in the credit. However some solar roofing tiles and solar roofing shingles serve as solar electric collectors while also performing the function of traditional roofing serving both the functions of solar electric generation and structural support and such items may qualify for the credit. Additionally eligible costs that qualify for the federal investment tax credit include the equipment directly related to the system such as the solar panels racking inverters wiring and monitors. The residential renewable energy tax credit as the irs calls it can be an attractive way to save on the significant cost of installing solar panels or roofing an average sized residential solar.

If anyone can shed further light on what i m interpreting here please weigh in. What expenses are included. You calculate the credit on the form and then enter the result on your 1040. In this member s case the roof didn t need to be replaced.

Currently we get to reduce our taxes by 30 of the cost of a solar installation. I would also go further and say that since you cannot do 50 of your roof if you need to do your roof in order to support solar then the entire cost of the roof is eligible for the tax credit. This to me is clear that roofing work that is done to support a solar system can be included as part of your tax credit claim. The following expenses are included.