Filing My Taxes - IRS 5695 Form "Cost" Interpretation Question

[NKetch22]

My apologies if this question has come up before, but I did not see it in the first three pages of my search of the question.

Starting with the back portion; our 5.88 kW system cost us a total of $30,500 per our contract with the installer. MassCEC (state incentive program) provided a $7,000 rebate (went directly to the installer). We received a $3,000 rebate from the panel manufacturer. The local utility company itself does not provide a rebate. While filling out the IRS 5695 form it asks for the "Qualified solar electric property cost". The 5695 instructions indicate "For purposes of both credits, costs are treated as being paid when the original installation of the item is completed."

My confusion is if I am to indicate that the system cost the full $30,500 that was listed on the contract or if I need to report a cost of $20,500 (taking out the CEC rebate and the manufacturer's rebate). How have others interpreted this?

Thanks.

[silversaver]

after all rebates and incentives

[J.P.M.]

after all rebates and incentives

FWIW, +1. But - check with your accountant. Unvetted advice off the net is unreliable. That's just the way the game is run.

[NKetch22]

Thanks. My CPA is researching the matter as well. The net obviously can only be taken with a grain of salt. Was just checking to see how others handle the IRS' vague language in their returns.

[JFinch57]

I think that if you're getting reportable income, e.g. grant with a 1099, that you can include it (I did). If not I'd think that it would be the bottom line. Your accountant should be able to direct you.