Solar Tax Credit on your Escape Anyone?

[jjdeluca]

Just wondering how many Escape owners (US) have been able to take advantage of the Federal Solar Tax Credit?

I understand that the 30% credit has been extended to 2034 (actually just till 2032, then drops to 26% in 2033 & 22% in 2034) and covers all solar-powered equipment that generates electricity, all solar power storage that's at least 3 KWh (ie. 250 Ah or larger battery capacity) and all labor. https://www.generalrv.com/blog/is-yo...ar-tax-credit/

So if I were to install solar/lithium batteries on my own, I could take the credit on the price I paid for those items. However, for folks who've had Solar installed by ETI, as part of your original purchase, were you able to take a credit for cost of those eligible components installed by ETI?

[Iowa Dave]

We had solar installed by ETI on our 19 and solar installed by ETI on our 21, both after the original build and we bought both trailers as second owners. We claimed the solar credit two times and did not get any pushback whatsoever either time. This was in 2014 for a 2013 purchase ( the 19) and in 2018 for a 2017 purchase ( the 21). I haven’t followed the tax law on trailers since then but enjoyed the tax credit on our 7.6 kWh solar setup for our home installed in December of 2020. Loving those $13.00 per month electrical bills. By next February we will be I/2 way totally paid back on a 6.2 year payback.
Hope this helps
More power to you
Redi Kilowatt.

[Centex]

Posting just FYI / FWIW, YMMV, this is not tax advice, seek your own professional counsel, etc.

In my case I ordered my trailer with no solar equipment or lithium storage at all from ETI; only the 'base' standard electrical equipment with No Options in that category. I'm adding all of that after purchase of the trailer, so that's the context of this post.

FWIW my tax professional has counseled that I can take the 'solar tax credit' for the cost of my addition of PV panels including mounting hardware, solar controller, and all wiring / breakers, etc to install and connect that to my replacement (lithium) battery storage.

However, based on their research, they have advised that I cannot take the 'solar tax credit' for the replacement (lithium) battery storage itself because my trailer has provisions for also charging that battery storage from 'the grid' via the shore powered converter / charger I am installing. IF my battery could only be charged by the solar array or other 'non-grid' sources (as would be the case for a truly 'off-grid' residence using battery storage, for example), then yes, I could take the credit for that storage cost.

That's not a functional compromise I'm willing to make, so being 'conservative' in my dealings with the IRS I'm not trying to take the 'solar tax credit' for my replacement (lithium) battery storage costs. I'm not interested in testing the limits of any matter with the IRS in pursuit of a relatively few bucks (~$600) tax saving in the big scheme of things.

Posting just FYI / FWIW, YMMV, this is not tax advice, seek your own professional counsel, etc.

No comment at all on the potential applicability of the solar tax credit to anything installed by ETI / delivered on a trailer as OE; that's not a topic I've discussed with my tax professional.

[jjdeluca]

Originally Posted by Centex

Posting just FYI / FWIW, YMMV, this is not tax advice, seek your own professional counsel, etc.

In my case I ordered my trailer with no solar equipment or lithium storage at all from ETI; only the 'base' standard electrical equipment with No Options in that category. I'm adding all of that after purchase of the trailer, so that's the context of this post.

FWIW my tax professional has counseled that I can take the 'solar tax credit' for the cost of my addition of PV panels including mounting hardware, solar controller, and all wiring / breakers, etc to install and connect that to my replacement (lithium) battery storage.

However, based on their research, they have advised that I cannot take the 'solar tax credit' for the replacement (lithium) battery storage itself because my trailer has provisions for also charging that battery storage from 'the grid' via the shore powered converter / charger I am installing. IF my battery could only be charged by the solar array or other 'non-grid' sources (as would be the case for a truly 'off-grid' residence, for example), then yes, I could take the credit for that storage cost.

That's not a functional compromise I'm willing to make, so being 'conservative' in my dealings with the IRS I'm not trying to take the 'solar tax credit' for my replacement (lithium) battery storage costs. I'm not interested in testing the limits of any matter with the IRS in pursuit of a relatively few bucks (~$600) tax saving in the big scheme of things.

Posting just FYI / FWIW, YMMV, this is not tax advice, seek your own professional counsel, etc.

No comment at all on the potential applicability of the solar tax credit to anything installed by ETI / delivered on a trailer as OE; that's not a topic I've discussed with my tax professional.

Yes, we will likely be ordering a "base" (standard electrical) trailer with no solar/lithium and add it after taking delivery, just as you did.

In reading another forum on the topic (Oliver) the question of batteries qualifying for the solar tax credit was raised as well. However it was noted that the tax laws were recently updated in 2023 so that, according to some tax professional's interpretations, may now allow for battery storage to be included in the credit.
I'm not seeking tax advice from this (or other) forums and will consult with a CPA when the time comes (we all have to feel comfortable with what we claim on our individual taxes); but I was really just curious what others in the Escape community may have experienced on this topic.
Thanks for your feedback Centex!

[Bill and Earline]

There is actually a forum member who used to be a practicing CPA, who spent much of his career working for the IRS.

Back in 2014 when we bought our 21 with ETI installed solar, that well experienced CPA owner advised that it would be entirely appropriate to claim the solar cost, so I did.

I didn't even think about the batteries.

Anyway, the statute of limitations has now run on that tax year, so I'm good.

You may know that guy, Jim Norman, CPAHarley.

Hang in there, Jim