It doesn’t look good for everyone looking to claim the 30% energy tax credit just because you bought the equipment for a DIY, like me.
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My impression is that the credit is for a permanent Home Improvement, as in a permanent non-removable installation of solar equipment, such as rooftop panels, associated hardware, wiring, and labor costs. It says you must reduce the Basis of your house by the Solar Credit amount, (should you sell the house).
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I get the feeling you may have to permanently wire your Bluetti solar generator into your house wiring (as opposed to installing a generator plug-in-when-needed connector to Breaker Box, as well as putting all your panels on the roof making them part of the house, along with all the inspections, permits, and insurance required (groan). Since the major expense are the electronic parts, that may not be so bad to pay an electrician to wire it all in to your Breaker Box, and not claim credit for solar panels not mounted up on the roof. But of course, you might just have to have two AC500s (in my case) to have 240V to wire into the Breaker Box. So that may be a complication.
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Should your setup qualify, you’ll only get a refund not more than the total tax you already paid for the 2023 tax year. You can carry over the remaining credit, year after year until it’s used up. (That’s almost a decade for me).
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I may be wrong about this, but should you claim the credit without making it a permanent installation, you might want to have a professional do your taxes on this, one that will stand behind you should you be audited.
In 2022 I had rooftop solar installed on the house and is grid tied, I received the 30% federal tax credit when I filed in 2023. All the accountant wanted was the paid bill from the installer.
I also took the federal tax credit in 2017 at my prior home, with just a paid bill.
When I file in 2024, I am just giving him the receipts for the Equipment I purchased for the AC300, 3 b300’s, and any other electrical components.
I don’t believe he will ask for any proof of permanent installation, but I will see.
As with most online IRS filing now, you don’t need to send anything to the IRS but you will need to produce receipts if audited.
I’m thinking that having a generator transfer switch might be counted as a permanent installation for solar generators, but it can’t be a DIY. You’ll likely need the receipt from the Electrician who installed it, which will also be part of the tax credit.
These are from the IRS.gov form and qualification page. You aren’t sending in receipts. You are claiming what you spent on the minimum kwh rating (see instructions) and any installation. It doesn’t say what constitutes installation or connection. The 30% credit is explained in the part of the filing form. I’m not a CPA or tax professional so talk with your’s but I don’t see home visits as part of the program…lol.
The IRS does not say that it can’t be a DIY installation (“may include labor costs”), and not sure if it needs to be permanent, though having a transfer switch wouldn’t be a bad idea.
As far as auditing, I did not get audited when I received the 30% credit for a $30k rooftop solar, so I am not concerned for the $5k I spent for the AC300 and 3-batteries
From the IRS Website:
Qualified expenses include the costs of new clean energy property including:
- Solar electric panels
- Solar water heaters
- Wind turbines
- Geothermal heat pumps
- Fuel cells
- Battery storage technology (beginning in 2023)
Used (previously owned) clean energy property is not eligible.
Qualified expenses may include labor costs for onsite preparation, assembly or original installation of the property and for piping or wiring to connect it to the home.
Are you citing specific language that it has to be a permanent installation? I did not see that, and the deduction applies to owners and renters.
A minimum of 3Kwh is required, but nowhere does that articulate the battery itself must be over 3kWh, versus having for example 3x2kWh batteries for a total of 6kWh of storage.
I did see that an energy auditor had to be involved in thr certification process.