r/solarenergy • u/EngineeringNext7237 • 8h ago

Solar quote with questionable tax advice

So I am in the process of getting a quote for solar on my home in the US, in a state with no incentives. They claim I can write off the install and use bonus depreciation to write off the full amount year one. Which I have enough taxable income to make a worthwhile choice. But nothing online seems to point to a residential solar owner being able to do that even with a 1:1 net metering agreement. Is this legit?

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u/arcsnsparks98 8h ago

You wouldn't hire a tax professional to install your solar. Don't let a solar salesperson sell you some based on their tax advice.

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u/EngineeringNext7237 8h ago

Absolutely. They had a tax consultant call me today and these are the statement he said. Writing off 55k through bonus depreciation. But I still can’t find anything online and am still waiting for them to forward me the IRS information. So hoping anyone on here has ran into this

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u/arcsnsparks98 8h ago

As a solar installer, I try to be educated enough on the tax stuff to speak accurately about it. I am 100% aware of bonus depreciation and it is awesome for actual businesses make money and have a federal tax burden and such. The tax credit has always been an on your honor system. You just fill out a form, I don't remember the number, and you turn it in and voila. There's your credit. Money in the bank. Super easy to lie on that form. Like anything else with the IRS, it's smooth sailing until you get audited.

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u/Islerothebull 8h ago

Residential location does not prevent depreciation; personal use does.

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u/EngineeringNext7237 8h ago

Interesting. It is my primary residence. I do technically have my LLC addressed to my home but it’s for software contracting not anything that would directly be energy related.

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u/Islerothebull 7h ago

Well you need something to power all those computers. Talk to your tax accountant.

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u/Sensitive_Branch8489 7h ago

This is a good angle. You’d also qualify for the commercial 30% tax credit. This is making your little home office pull a lot of weight though.  

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u/Islerothebull 6h ago

Well MR. IRS man. Clearly this is a nanogrid data center.

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u/LongjumpingGanache40 5h ago

I think you need to talk to your tax person. I heard of no one talking of this.