Message Board › Qualified Solar – lease, roof
- This topic has 1 reply, 2 voices, and was last updated 8 months, 2 weeks ago by Mike Giangrande.
October 23, 2019 at 3:30 pm #186567Robert DowningParticipant
I understand that leased solar doesn’t qualify for the residential energy property credit. I had a client ask if the roof the leased solar is installed on, would quality for the credit. Clients contractor told her it qualified…
The instructions of the 5695 mention:
Qualified solar electric property costs. 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.
The part “no costs relating to a solar panel or other property installed as a roof will FAIL to qualify solely because the property constitutes a structural component of the structure in which it is installed.” Makes it clear that a roof can qualify for the credit but I couldn’t find anywhere that excluded these costs related to the solar panel if the solar panel itself didn’t qualify for the credit.
I had thought the solar property would have to qualify for the credit to take the associated structural component costs but I haven’t found anything excluding this…
October 24, 2019 at 7:08 am #186671Mike GiangrandeParticipant
Roof repairs and replacements do not qualify, you are correct about that. The solar salesperson, as usual, is wrong.
The language you quoted from the instructions is because of the latest solar trend that puts solar panels directly into the roof tiles themselves. If the roof tile itself is a small solar panel, then technically, a roof replacement would qualify. This would also apply to taxpayers who construct a car port on their property and the entire car port is made up of solar panels and structural components (similar to what you see in a lot of parking lots these days).