Inverter Question on where power will be supplied

[Jim.Allison]

If you guys get your solar installed before 2016 you will get a 30% credit on the system. And yes the IRS has confirmed that you RV is a home and eligible for the tax credit, if you spend $5000 on a solar power system, you can get a $1500 credit from the IRS, EVEN if you install it yourself. Everything in the system from the sub panel and breakers, the transfer switch, inverter, battery cable, the batteries, solar charger, wire, and panels are all eligible in the tax year that you complete the system.

There are many that will argue about this, but look it up yourself.

 

[scottyb]

Jim, how does that tax credit work? Does the 30% come off your adjusted gross income or does it come off the amount of taxes you pay? I've never taken any type of tax credit before.

Just found the answer to my own question. This is from Turbo Tax;

[h=3]Credits for approved solar installations[/h]If you install Energy Star-approved solar-power systems before the end of 2016, you can claim 30 percent of the cost as a tax credit for the year you installed it.

As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income. You can claim the credit for your primary residence, a vacation home, and for either an existing structure or new construction. Other than the cost of the system, there's no limit to the dollar amount of the credit.

Thanks for pointing this out.

 

[pegmikef]

Jim, how does that tax credit work? Does the 30% come off your adjusted gross income or does it come off the amount of taxes you pay? I've never taken any type of tax credit before.

Just found the answer to my own question. This is from Turbo Tax;



Thanks for pointing this out.

Line 53 of your Form 1040. It is used in computing your tax so it comes directly off your tax you pay.

 

[PointyWombat]

I dry camp ~75% of the time and I installed my inverter (MS2812) as a whole-house setup. When dry camping, i just make sure the fridge is set to propane, and I don't use things with excessive draw (A/C, fireplace, 110V heaters). It's probably the easiest and most convenient of the setups as it negates the need for a sub panel, and deciding which 110V outlets and appliances to provide power to, then the re-wiring that's necessary. I also have a Keurig Mini which we use all the time when drying camping. Some inverters also have an internal automatic transfer switch (like the MS2812), which simplifies things even more.

PW

 

[EPaulikonis]

I've seen quite a few folks mention tax credit for solar system. Has the IRS stated the credit will only be valid through 2015 or is this a year-by-year credit that gets re-approved? If the 30% tax credit is part of the Residential Renewable Energy Credit, it should be good through 2016 according to the Department of Energy's site.

If you guys get your solar installed before 2016 you will get a 30% credit on the system. And yes the IRS has confirmed that you RV is a home and eligible for the tax credit, if you spend $5000 on a solar power system, you can get a $1500 credit from the IRS, EVEN if you install it yourself. Everything in the system from the sub panel and breakers, the transfer switch, inverter, battery cable, the batteries, solar charger, wire, and panels are all eligible in the tax year that you complete the system.

There are many that will argue about this, but look it up yourself.

 

[Jim.Allison]

You can search it on the net, the credit is valid for the year that you completed it. for right now it is definitely on for 2015 tax year, and I think for 2016, but not after that.

http://www.irs.gov/pub/irs-pdf/f5695.pdf

AS with all things IRS you must read it very closely and not read anything into or out of the deduction. or else you risk losing the credit based on your interpretations. I have mine with my CPA/Tax preparer who is very conservative when it comes to taxes. He is a "the law is the law" kind of man, so I don't know for sure if I'm going to get it, but if I don't, I will tell you why on this thread.