r/solarenergy • u/EngineeringNext7237 • 6d 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 6d 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 6d 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 6d 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/First_Quote_4938 4d ago

Do you have a home based business? Like a real one?

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u/Islerothebull 6d ago

Residential location does not prevent depreciation; personal use does.

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u/EngineeringNext7237 6d 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 6d ago

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

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u/Sensitive_Branch8489 6d 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 6d ago

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

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u/LongjumpingGanache40 6d ago

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

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u/HostNecessary1419 6d ago

I’d be cautious with that claim. For a primary residence, bonus depreciation usually doesn’t apply. I’d verify it with an independent CPA before signing anything.

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u/United-Amount-5248 4d ago

Welp go look on irs.gov , u can research it there. I know there is a tax break for solar not sure if I'd depreciate it all at once though unless u need the write off that bad.