shared solar system

[jimenright]

http://www.lawofrenewableenergy.com/2015/09/articles/solar/irs-opens-door-for-community-solar-investors-to-qualify-for-federal-tax-credits/

http://www.utilitydive.com/news/comm...ruling/405067/

The IRS has, in a private letter ruling, allowed an individual to take an energy credit for units in a shared solar system (See the links above). I have a client in a similar situation. Would you advise them to take the credit now, or wait for additional clarification from the IRS?

[Rapid Robert]

When I first saw the thread title, I thought: What? Someone from Alpha Centauri is planning to move in next door on Mars?

[taxea]

http://www.lawofrenewableenergy.com/...l-tax-credits/
http://www.utilitydive.com/news/comm...ruling/405067/

The IRS has, in a private letter ruling, allowed an individual to take an energy credit for units in a shared solar system (See the links above). I have a client in a similar situation. Would you advise them to take the credit now, or wait for additional clarification from the IRS?

here's your answer " the decision cannot be used as precedent by other taxpayers". You need to get a ruling for your client.

[New York Enrolled Agent]

here's your answer " the decision cannot be used as precedent by other taxpayers". You need to get a ruling for your client.

Sorry but I don't think that is the final answer. While it is true that PLRs are not to be used as precedent, the conclusions can be used as a guide to the IRS position. In fact, the IRM at 4.10.7.2.10(3) notes that.

As per Reg. §1.6662-4(d) PLRs are a source of authority.

Jimenright - I presume your client has a solar sharing situation similar to the facts of the PLR. After speaking to the client and getting approval, I would file the return and enclose a Form 8275 Disclosure. By virtue of the PLR, you now have a reasonable basis to take the position on the tax return and if you file the 8275 along with the return you will protect the taxpayer from any understatement penalties under §6662 and protect yourself from any preparer penalties under §6694.