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    Solar Energy Production

    The old bill from the 1970s which forced utilities to purchase electricity from owners who were able to generate electricity from solar, wind, or geothermal sources is in danger of being rescinded (if it hasn't already).

    I have a taxpayer who owns a commercial building that will generate $10,000 per year in such sales to TVA. He will also receive a tax credit of 2.3 cents per KWH, the credit will be appx $2800. The credit will be one of the "general business credits" - form 3800.

    I believe the $10,000 is taxable, but don't know where to report it. I can't imagine it would be self-employment income. Would it be royalties? Rental? Misc Income? There will also be depreciation available as a deduction against the $10,000. Where to deduct depends on what kind of income it is.

    And a final question...is this "investment income" for purposes of the NIIT?

    #2
    At the very least it is other income, however if done with consistency and regularity it could be considered sales from manufacturing and be subject to SE as a business. Best to do IRS research.
    Believe nothing you have not personally researched and verified.

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