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Master Thread: Energy products and Tax discussions
- Thread starter jjrandorin
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- tax tax credit
I guess it depends how form is filled out. If I get there, will try to do it exempt, but does not make sense to me, but, ...
RKCRLR
Active Member
You don't fill out the form, your installer does (unless you're registering yourself as the developer and are doing all of the SGIP "paperwork").
willow_hiller
Well-Known Member
FYI: it looks like Form 5695 is available for 2020 now: https://www.irs.gov/pub/irs-pdf/f5695.pdf
Although if you use a service like Turbotax, they're estimating it will be available for e-file starting 1/28/2021: Federal Individual Forms Availability
Although if you use a service like Turbotax, they're estimating it will be available for e-file starting 1/28/2021: Federal Individual Forms Availability
willow_hiller
Well-Known Member
Should be the same; as long as your batteries are installed with a solar system, they count under line 1. Qualified solar electric property costs.
RKCRLR
Active Member
I never filled out that particular form (that I remember but Tesla isn't good at providing you completed copies of the forms). Tesla filled out everything and had me digitally sign them. They are all electronic forms. They don't send paper copies (that I'm aware of) but enter everything through the SGIP portal. SGIP sent me an example screenshot of the tax information fields on the portal when I asked about the 1099 information.
I just talked to my installer co. This was one of the questions. I just sent him the form so he could look into an answer for me.
Provided the batteries are configured to charge exclusively from solar it would still be listed there. For purposes of the ITC, the batteries should be thought of as a part of the solar-powered system - in this case a later add-on, just as if you added additional panels to the system. (To further this point, if the batteries were installed in conjunction with a wind-powered system instead of solar-powered, as one member has documented doing, if claiming the ITC the batteries would be included on line 3 instead of line 1.)
Thanks for info. When you say SGIP send you that form , did you mean from [email protected] or SGIP equivalent email of your utility provider?
Thanks for info. When you say SGIP send you that form , did you mean from [email protected] or SGIP equivalent email of your utility provider?
RKCRLR
Active Member
According to this article, the GREEN Act that was just introduced says:
Does this mean that even if Tesla Solar claims (correctly) that the Federal Tax Credit is at 26%, when this bill becomes law, I will somehow receive an extra 4%? Or would I have to wait for the bill to pass before installation?
And according to this article, it also says the following:
Does this mean that we could receive further discounts on the Powerwalls?
What are your thoughts?
Does this mean that even if Tesla Solar claims (correctly) that the Federal Tax Credit is at 26%, when this bill becomes law, I will somehow receive an extra 4%? Or would I have to wait for the bill to pass before installation?
And according to this article, it also says the following:
Does this mean that we could receive further discounts on the Powerwalls?
What are your thoughts?
This proposal still seems a good way off from potential passage, so things could change, but to answer your question, it might. The legislation could absolutely change the percentage retroactively, and you would be entitled to that. That was actually the case for us with the home energy efficiency credit a few years back - we replaced windows and doors well after the credit expired and then Congress unexpectedly (at least to us) extended the credit retroactively, so we essentially got a free $500. But it might also be updated to only provide it for future projects. In either case, note that Tesla does not guarantee or issue you a credit - you fill out the applicable tax form (form 5695) to claim the ITC from the IRS.
The powerwall piece is interesting because right now, storage is not explicitly included in the credit. However, the IRS has essentially taken a position (in private letter rulings, so it is not official) that PWs are covered by the ITC as long as they are exclusively charged by the clean energy system that is getting the credit. It seems like this might formalize that, and, depending on the wording (I haven't read the details) could change some of the rules around exactly which PW installations qualify. If you were planning PWs to pair with solar, it does not seem like this changes much (other than 30% vs 26%) but it might potentially allow more flexibility in how PWs are used, depending on the exact wording.
Overall, while I think it is great that attention is being paid to climate change, I am not entirely convinced that upping this credit and extending it for so long is necessarily the best approach - it seems like it has done its job to improve the technology and bring costs down, but extending it this far may serve to push out demand rather than encourage it.
The powerwall piece is interesting because right now, storage is not explicitly included in the credit. However, the IRS has essentially taken a position (in private letter rulings, so it is not official) that PWs are covered by the ITC as long as they are exclusively charged by the clean energy system that is getting the credit. It seems like this might formalize that, and, depending on the wording (I haven't read the details) could change some of the rules around exactly which PW installations qualify. If you were planning PWs to pair with solar, it does not seem like this changes much (other than 30% vs 26%) but it might potentially allow more flexibility in how PWs are used, depending on the exact wording.
Overall, while I think it is great that attention is being paid to climate change, I am not entirely convinced that upping this credit and extending it for so long is necessarily the best approach - it seems like it has done its job to improve the technology and bring costs down, but extending it this far may serve to push out demand rather than encourage it.
@wjgjr I know we've had this discussion on the other thread
I have solar, I have Powerwalls. I own an EV, I believe in the electrified future. I am 100% against demand side subsidies. They've screwed up the market every time they're implemented and the solar market is too precious to our future. Just look at college education costs in the US.
What the federal government can do is work to provide regulatory frameworks that actually encourage AHJs to streamline and enable the installation of solar at all scales. That investment would go so much further than an ill advised tax credit. It's funny to me that a rep from California is pushing this when I read about how screwed up the regulations are in certain places in CA that is making actually installing solar difficult.
Throwing federal tax dollars at the demand side sounds good and feels good but doesn't actually solve anything.
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To be totally clear: ITC doesn't discount Powerwalls. Suppliers are the ones that capture the demand side subsidies. Those subsidies just shift the demand curve and the supplier is the one who benefits.
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