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Federal Solar Tax Credit form 5695

S13
Level 1

client spent $16,400 for installation of Solar system. How to get federal solar tax credit. Form 5695 no entry for installation cost.

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1 Comment 1
NOCOCPA
Level 1

Now that I have edited my answer ten times, I finally found the solution - you don't break out installation costs:  https://www.solarreviews.com/blog/guide-to-claim-the-itc

So what’s a qualified solar electric property cost? Here’s what the instructions for Form 5695 say:

"Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home.

Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. Some solar roofing tiles and solar roofing shingles serve the function of both traditional roofing and solar electric collectors, and thus serve functions of both solar electric generation and structural support. These solar roofing tiles and solar roofing shingles can qualify for the credit. This is in contrast to structural components such as a roof's decking or rafters that serve only a roofing or structural function and thus do not qualify for the credit. The home does not have to be your main home."

All that is a fancy way of saying “Pretty much any cost related to installation and materials of solar energy generating property counts. Claim it.”

 

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