Solar Tax Credit

[JKJavelin]

I had a complete solar system installed in Quartzsite earlier this year and I have since found out that the IRS has a 26% tax credit for solar installations on your primary or secondary residence. They accept an rv as a second residence, but I've seen references to motor homes and mobile homes, not travel trailers or fifth wheels. I've also seen descriptions by others that a dwelling with a bed, toilet and stove as acceptable.
Anybody have any experience with this? We spend considerable time 'living' in our rig.
JK

[Crespro]

Hello,

This is an interesting concept. Let me quote the IRC and an IRS Notice. It appears that a full-timer who uses a class A, fifth wheel or TT as principal residence does qualify.

There may be an argument that the first bold limitation is descriptive and the second bold sentence permits the credit for an RV. You should share this with your CPA who will make the decision.

Crespro

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I.R.C. § 25D(d)(2) Qualified Solar Electric Property Expenditure — The term “qualified solar electric property expenditure” means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer.

Q&A on Tax Credits for Sections 25C and 25D
Notice 2013-70

SECTION 1. PURPOSE
This notice provides guidance with respect to the credits for nonbusiness energy property under § 25C of the Internal Revenue Code (Code) and residential energy efficient property under § 25D of the Code. This notice incorporates the changes made to § 25C by section 710 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. L. No. 111-312, 124 Stat. 3296 (2010) (the 2010 Act) and to § 25C and § 25D by sections 104 and 401 of the American Taxpayer Relief Act of 2012, Pub. L. No. 112-240, 126 Stat. 2313 (2013) (the 2012 Act).

SECTION 3. QUESTIONS AND ANSWERS RELATED TO BOTH § 25C (NONBUSINESS ENERGY PROPERTY) AND § 25D (RESIDENTIAL ENERGY EFFICIENT PROPERTY)

Q-6: Are the credits available for improvements made to a second home (for example, a vacation home or an investment property)?
A-6: Improvements made to a second home are not eligible for the credit under § 25C.
Section 25C(c) and (d) require qualified energy efficiency improvements and residential energy property to be installed in or on a dwelling unit owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of § 121).
With respect to the credit under § 25D, fuel cell property credits are not available for second homes. Section 25D(d)(3) requires fuel cell property to be installed on or in connection with a dwelling unit that is used as the taxpayer’s principal residence (within the meaning of § 121). However, a taxpayer may claim a § 25D credit for other qualifying properties described in § 25D that are not fuel cell properties (solar electric property, solar water heating property, small wind energy property, and geothermal heat pump property) installed in or on a dwelling unit used as a second home or a vacation home by the taxpayer. But a taxpayer may not claim the § 25D credit for expenditures for improvements made to an investment property, such as rental property, that is not also used as a residence by the taxpayer.


(2) Dwelling unit. For purposes of this paragraph (e), the term dwelling unit has the same meaning as in section 280A(f)(1), but does not include appurtenant structures or other property.

Sec. 280A(f)Definitions and special rules
(1)Dwelling unit defined For purposes of this section—
(A)In general The term “dwelling unit” includes a house, apartment, condominium, mobile home, boat, or similar property, and all structures or other property appurtenant to such dwelling unit.

[Taxman2436]

LOL, yes he is.

[Walaby]

Edd505 wrote:
I know you can deduct the interest on the RV as a second home. Taking the tax credit for solar seams like a no brainier, but then I'm not a tax expert.

Taxman2436 probably is (I dunno.. maybe something with his moniker), and he answered it.

Mike

[Edd505]

I know you can deduct the interest on the RV as a second home. Taking the tax credit for solar seams like a no brainier, but then I'm not a tax expert.

[JKJavelin]

This is one of several websites promoting it:
www.solar-electric.com/learning-center/save-money-on-rv-solar-with-the-federal-solar-tax-credit/

[Lynnmor]

Many years ago I was building a new house. In the middle of the construction there was a tax credit started. I couldn't make sense of how it pertained to me so I went to the IRS office where I got a lot of smarta$$ remarks about it being for builders, not me. I went home and put in the figures that eliminated every dime of tax and mailed it.

[Taxman2436]

The solar credit is for your main home only. The mortgage interest deduction applies to a primary residence and second home. Your travel trailer would qualify as a second residence for the interest deduction but there is no credit for solar installations on a second home. I believe that is where the confusion comes from.

I hope this helps.

Lenny

[Lwiddis]

A Birger King bureaucrat? Why the cheap shot at state and federal tax agency workers?

[gbopp]

JKJavelin wrote:
Somehow I have doubts that a beaurocrat on the phone will understand the difference between a motorhome and a fifth wheel.

I agree. You will probably have better luck calling Burger King and asking the question. 🙂

[bgum]

Sure way to trigger an audit but may be entirely appropriate. Consult a tax professional not Good Sam membership.

[JKJavelin]

Yes, I googled it first and didn't see a clear answer, that's why I thought I'd see if anyone here with a trailer/fifth wheel had done it.
Somehow I have doubts that a beaurocrat on the phone will understand the difference between a motorhome and a fifth wheel. But I might have to find out.
JK

[time2roll]

Take it.

[2oldman]

google

[Old-Biscuit]

Why not contact the IRS and find out directly from them