What documents are required for the solar tax credit?

[kamckinley]

Hi All. I have a client who purchased solar panels for their personal residence at a cost of $26,000. The credit is for 30% of the cost, so I want to make sure I have what I need before filing their taxes.

I requested documents, invoices, certificates, etc. They forwarded the invoice and a sales contract, but no certificates.

The sales contract says they "may" qualify for a tax credit. There are some details at the bottom of the sales contract, some LED Conversion and other numbers that don't make sense to me, but there isn't an actual certificate or document that says they meet the energy criteria.

My question is, what documentation is required to take the credit? Do I need to confirm any numbers, do I need a certificate that explicitely states the panels they bought meet the energy criteria?

I've been searching TTB and the web and just not having any luck. Any help is greatly appreciated!

[terryats]

I would think a bill from solar company is good enough, the instruction from form 5695 follows: Qualified solar electric property costs. Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. The home doesn't have to be your main home.

[kamckinley]

Thanks for the response. I'm not sure I'm willing to take an $8,000 credit on a client's tax return just based on an invoice.

From previous energy credits, I thought the solar panel had to meet certain criteria, or the model number had to be on a list of approved solar panels that meet the energy criteria. I found a manufacturer certificate online that seems to support this. It was my understanding that manufacturers needed to provide similar documents to customers before they could claim the credit. That is what I asked my client for but still haven't received.

Has anyone else had experience with the solar tax credit that can chime in? Thanks again!

[spanel]

https://energystar.zendesk.com/hc/en...-solar-panels-

Dont think your going to find a certificate per say as it appears they all qualify.

Chris

[TaxGuyBill]

You may be thinking of the expired credit for windows, furnaces, and air conditioners which required specific criteria.


As Spanel pointed out, all solar panels qualify because they don't need to meet specific energy criteria. Here is the definition from the Tax Code of what qualifies:

"The term “qualified solar electric property expenditure” means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer."

https://www.law.cornell.edu/uscode/text/26/25D#d

[kamckinley]

Thank you everyone, I appreciate the help!