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Solar Panels on Houses: Solar Panels to Save Money
Many families look everywhere for smart ways to save money. One good way to save money is by becoming more energy efficient. This means that from appliances to windows, everything inside the house helps one way or another to save energy.
Saving energy is not any longer a problem for each family. We are moving into and energy crisis that will affect our lives.
Think about it. We all depend so much on energy that thinking on having a non energy habitat seems impossible to bear. How would you cook you food, how would you take a shower, or watch your favorite TV show, or access the Internet?
Solar Panels on Houses are also a great investment. You win because you keep more money into your pocket. Our world wins because you become part of the solution.
If you are a home owner, you should switch to Solar Panels.
Solar Panels on Houses is Supported by the Government
The ITC is received effectively “up-front” when the solar panel system is installed (or at the end of that tax year), it is actually earned over 5 years in equal 20% increments. If the property becomes ineligible for the ITC (is disposed of or sold by the taxpayer, taken out of service, or taken outside of the U.S.), IRC Sec. 50(a)(1) stipulates that the taxpayer must repay the unearned portion via the recapture mechanism.
For example, if the taxpayer sells the system after 2.8 years of ownership, she has only earned 2 of 5 years (40%) of the ITC, and must repay 60%.
The U.S. Treasury Grant has the same recapture mechanism, but is slightly more relaxed. If the property is sold to another eligible party, the original party receiving the grant is not subject to recapture as long as the receiving party maintains the property’s Grant eligibility for the remainder of the 5 years.
If they don’t, the original party will suffer the recapture event.
In 2008, home-based businesses (if >20% business allocation of the home) typically qualified for the ITC as well. Because the credit applies on both individual (residential) and business tax returns, but was capped on residential, it needed to be properly apportioned on each part of the tax return to ensure the right credit amount is claimed. Home-based businesses are typically apportioned based on percentage of square footage attributed exclusively to the business.
To figure the credit, one typically applies the percentages to the two separate calculations then sums the results.
Solar Panels on Houses and the Uncapped ITC
From 2009 to 2016 with the uncapped ITC, this distinction is probably no longer relevant.
Beginning in 2009 taxpayers (individuals and businesses) will be able to claim the federal ITC even if they are subject to the Alternative Minimum Tax (AMT).
Solar panel systems placed in service before the end of 2008 can suffer AMT limitation because the solar ITC (and Accelerated Depreciation discussed in the next section) are ‘Tax Preference Items’ that can cause AMT and limit the enjoyment of the ITC benefit, even if the taxpayer wasn’t subject to AMT before getting the solar system.
Even with the ITC “AMT relief” starting in 2009, the Accelerated Depreciation may still cause an AMT situation for businesses.
There is an open question in the solar industry about the application of the ITC to “property used for lodging”. Sec. 50(b)(2) indicates that the Federal ITC is not available for “property used for lodging”. This sentence has created a fair bit of concern for the solar industry, because it appears to exclude hotels/motels and rental property. However, Sec. 50(b)(2)(D) seems to exempt “Any energy property” (which solar is as defined in Sec. 48(a)(3)(A)(i) “equipment which uses solar
energy to generate electricity”) from this exclusion.
We would like to partner with you, so you can receive FREE ENERGY from now on. Our Solar Panels on House in San Diego are available for all neighborhoods in San Diego, and the cities of National City, Chula Vista, El Cajon, La Mesa, Spring Valley, Lemon Grove, Santee, Point Loma, Mission Valley, Mid-City, Coronado, Lakeside, Rancho San Diego, Otay Ranch, Bonita, La Joya, Pacific Beach, Imperial Beach, San Ysidro, and Tijuana. For other cities, please contact us.
Click here to receive your FREE estimate for a Solar Panels on Houses in San Diego.
Play Clean. Go Solar!
Get Energy From Solar Power
Many families look everywhere for smart ways to save money. One good way to save money is by becoming more energy efficient. This means that from appliances to windows, everything inside the house helps one way or another to save energy.
Saving energy is not any longer a problem for each family. We are moving into and energy crisis that will affect our lives.
Think about it. We all depend so much on energy that thinking on having a non energy habitat seems impossible to bear. How would you cook you food, how would you take a shower, or watch your favorite TV show, or access the Internet?
Solar Panels on Houses are also a great investment. You win because you keep more money into your pocket. Our world wins because you become part of the solution.
If you are a home owner, you should switch to Solar Panels.
Solar Panels on Houses is Supported by the Government
The ITC is received effectively “up-front” when the solar panel system is installed (or at the end of that tax year), it is actually earned over 5 years in equal 20% increments. If the property becomes ineligible for the ITC (is disposed of or sold by the taxpayer, taken out of service, or taken outside of the U.S.), IRC Sec. 50(a)(1) stipulates that the taxpayer must repay the unearned portion via the recapture mechanism.
For example, if the taxpayer sells the system after 2.8 years of ownership, she has only earned 2 of 5 years (40%) of the ITC, and must repay 60%.
The U.S. Treasury Grant has the same recapture mechanism, but is slightly more relaxed. If the property is sold to another eligible party, the original party receiving the grant is not subject to recapture as long as the receiving party maintains the property’s Grant eligibility for the remainder of the 5 years.
If they don’t, the original party will suffer the recapture event.
In 2008, home-based businesses (if >20% business allocation of the home) typically qualified for the ITC as well. Because the credit applies on both individual (residential) and business tax returns, but was capped on residential, it needed to be properly apportioned on each part of the tax return to ensure the right credit amount is claimed. Home-based businesses are typically apportioned based on percentage of square footage attributed exclusively to the business.
To figure the credit, one typically applies the percentages to the two separate calculations then sums the results.
Solar Panels on Houses and the Uncapped ITC
From 2009 to 2016 with the uncapped ITC, this distinction is probably no longer relevant.
Beginning in 2009 taxpayers (individuals and businesses) will be able to claim the federal ITC even if they are subject to the Alternative Minimum Tax (AMT).
Solar panel systems placed in service before the end of 2008 can suffer AMT limitation because the solar ITC (and Accelerated Depreciation discussed in the next section) are ‘Tax Preference Items’ that can cause AMT and limit the enjoyment of the ITC benefit, even if the taxpayer wasn’t subject to AMT before getting the solar system.
Even with the ITC “AMT relief” starting in 2009, the Accelerated Depreciation may still cause an AMT situation for businesses.
There is an open question in the solar industry about the application of the ITC to “property used for lodging”. Sec. 50(b)(2) indicates that the Federal ITC is not available for “property used for lodging”. This sentence has created a fair bit of concern for the solar industry, because it appears to exclude hotels/motels and rental property. However, Sec. 50(b)(2)(D) seems to exempt “Any energy property” (which solar is as defined in Sec. 48(a)(3)(A)(i) “equipment which uses solar
energy to generate electricity”) from this exclusion.
We would like to partner with you, so you can receive FREE ENERGY from now on. Our Solar Panels on House in San Diego are available for all neighborhoods in San Diego, and the cities of National City, Chula Vista, El Cajon, La Mesa, Spring Valley, Lemon Grove, Santee, Point Loma, Mission Valley, Mid-City, Coronado, Lakeside, Rancho San Diego, Otay Ranch, Bonita, La Joya, Pacific Beach, Imperial Beach, San Ysidro, and Tijuana. For other cities, please contact us.
Click here to receive your FREE estimate for a Solar Panels on Houses in San Diego.
Play Clean. Go Solar!
Get Energy From Solar Power