Solar Credit include new roof shingles?

[nwtaxlady]

Client purchased solar panels in 2022. They said the existing roof only had a year left on it. Client got outside bids as well, it was cheaper to have the solar company install new roof prior to placing solar panels on top of it. Therefore the cost including the roof and panels was $43K. Does the full $43K qualify for the credit? I know there are say Tesla Solar roofs that would qualify but this is not the case. This is roof shingles replaced when solar was added. Can the Credit taken on the full "project cost" of $43k?

[New York Enrolled Agent]

Client purchased solar panels in 2022. They said the existing roof only had a year left on it. Client got outside bids as well, it was cheaper to have the solar company install new roof prior to placing solar panels on top of it. Therefore the cost including the roof and panels was $43K. Does the full $43K qualify for the credit? I know there are say Tesla Solar roofs that would qualify but this is not the case. This is roof shingles replaced when solar was added. Can the Credit taken on the full "project cost" of $43k?

Probably no.

The new shingles are not an integral part of the solar installation IMO. The law is new - you might want to take a look at Fact Sheet 2022-40. It is informal but some good information until the IRS issues formal guidance.

[TaxGuyBill]

https://www.thetaxadviser.com/newsletters/2019/aug/solar-energy-credit.html