Solar Tax credit-property placed in service date after 12/31/19 but by 1/1/2024 - Spidell

Solar Tax credit-property placed in service date after 12/31/19 but by 1/1/2024

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Message Board Solar Tax credit-property placed in service date after 12/31/19 but by 1/1/2024

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    • #189067
      Donald Lucove
      Participant

      Does not the Bipartisan Budget Act of 2018 remove the requirement that property must be placed in service by 12/31/19 and a requirement to begin construction by a certain later date?  I read that as modified the construction of energy property must begin before 1/1/2022, but have a binding contract and a 5% safe harbor.  For solar energy projects that begin before 1/21/2020 and are placed in service by 1/1/24 the credit is 30%.  Have I interpreted 2018-59 incorrectly?

    • #189180
      Lynn Freer
      Participant

      Are you talking about residential solar property or business?

    • #189182
      Donald Lucove
      Participant

      Commercial

    • #189677
      Jack Fuller
      Participant

      What about residential?  Does 2018-59 not apply to residential?

       

    • #189758
      Donald Lucove
      Participant

      I need confirmation on this.  The Spidell minute sent most recently discusses placed in service by 12/31/19 to claim the credit.  I called Spidell to discuss the issue but it was suggested that I post on the message board.  I am actually asking if the Spidell California Minute Sunday 10/27/19 might need revision to include the fact that as I read the act mentioned in my question there is no such requirement.  My case is commercial/business related, and the solar industry is providing my client with pages and pages of backup;  I am not satisfied until I independently confirm.

    • #190383
      Mike Giangrande
      Participant

      Donald,

      For the business solar credit (which is the nonresidential energy credit under section 48), the project must be started by 12/31/2019 to qualify for the 30% credit. You won’t actually claim the credit until the year the project is complete, but in that year, you will claim the full 30% credit.

      HOWEVER, if you some reason your project is not completed by 1/1/2024, then your credit will drop to 10%. Further, Notice 2018-59 only applies to the nonresiential energy credit under section 48. It does not apply to the residential energy efficient property (REEP) credit under section 25D.

      For the REEP credit, the project must be completed by 12/31/2019 to qualify for the 30% credit.

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