Documentation needed for 30% Tax Credit

[LouieA]

Hey Gang,

I understand that a system technically needs to be "in service" the fiscal year where the credit is to be applied. But several solar companies I spoke with said other customers have gotten around this technicality by supplying their accountant with an invoice/contract that is dated before 12/31 while still in the permitting / planning phase.

If that is the case, I would definitely pull the trigger on a contract this month. What has been the experience of others on this forum?

Best,

LouieA

[sensij]

But several solar companies I spoke with said other customers have gotten around this technicality by supplying their accountant with an invoice/contract that is dated before 12/31 while still in the permitting / planning phase.

Sounds like you should have a conversation with your accountant about it.

Key text of form 5695 is:

Costs.
For purposes of both credits, costs are treated as being paid when the original installation of the item is completed,

Similar text is in the IRS tax code, Title 26, Section 25D(e)(8):

(8) When expenditure made; amount of expenditure
(A) In general
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.

(B) Expenditures part of building construction
In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins.

[SoCalsolar]

You will Likely get away with it

But I don't give tax advice or make any guarantees. I've seen it done a few times just don't get caught. Some installers will supply you with a certificate of completion except it really doesn't mean anything. Its a risk some are willing to take.

[russ]

If you don't want to do the time then don't do the crime.

The sales people giving advice are being cute - they have zero responsibility in the matter.

It is like anything else with taxes - cheat as much as you want but don't cry if you get caught.

[LouieA]

Thanks gents -- Like with everything else there is usually a gray area to operate while operating within the letter of the law. I spoke to my accountant and unfortunately he did confirm that the credit would only apply if the unit was installed. So 2015 it is .....