New Member - Aloha from Kauai

[DaveH]

Have question re my eligibility for tax credits for "upgrade" to my existing home PV system:

Had a PV system installed when home was built in 2008. This summer had new inverter installed. New one has: (1) the independent output feature, wherein if grid goes down (and PV system must disconnect itself from the grid) this inverter will still put out power to a special outlet. Previous inverter would just shutdown. This will be an important feature should/when we get a high wind event (We have more frequent power outages than most utilities, IMHO); (2) greater capacity than previous one, which will allow me to add some panels when I get ahead a few bucks more; and (3) better reliability - the old one went down 3 -4 times.

So, I believe I have upgraded my system. But in searching the IRS, and the Hawaii state literature, I cannot find anything that speaks to an "upgrade" of an existing system has being eligible for the tax credit. Can anyone help? Did I miss something? The words in the IRS literature could be taken as allowing it.

Mahalo,

DaveH

[boostinsteve]

I am pretty sure that the State only gives the tax incentives for the initial purchase. All upgrades and repairs will be your dime. This was to help push the solar industry. It has been a while since I have looked at it though.

[inetdog]

IMHO (IANATL), the federal tax credit can be taken more than once as long as each purchase meets the requirements and the credits are calculated, applied and expired separately, and stay within any overall maximum amount.
The State situation depends on the exact wording of the law as well as its interpretation. I suggest you get local advice that is more reliable than our opinions here on the Forum.