Regarding the solar investment tax credit for businesses, I understand that the credit is 26% of the qualified solar property and also that the basis in the business solar equipment has to be reduced by 50% of the tax credit from reading various articles. I can't seem to find the IRC code section or a publication that states that basis has to be reduced by 50% of the tax credit. Where can I find an actual IRS document that says this?
Solved! Go to Solution.
What Is the Basis for Depreciation?
The basis for depreciation of MACRS property is the property's cost or other basis multiplied by the percentage of business/investment use. For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1. Reduce that amount by any credits and deductions allocable to the property.