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March 27, 2024
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Adjusted Basis When Getting Solar Tax Credit

  • March 27, 2024
  • 1 reply
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How do I compute the adjusted basis of the solar electric system when I get a residential clean energy property credit of 30% of the cost?  Thanks.

    Best answer by AmyC

    So, I can still depreciate the full cost of the solar electric installation, even after getting the federal tax credit?


    Yes, the tax credit does not reduce your basis.

    1 reply

    March 27, 2024

    The adjusted basis of the solar electric system is the cost of the system less any rebates or discounts.  If you received a rebate from your local utility then you need to reduce the cost of the system by that amount.  

     

    @pahnert 

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    peteZ88Author
    March 27, 2024

    Is the federal tax credit considered a 'rebate' for the purposes of reducing the adjusted cost basis?

    March 27, 2024

    No.

     

    @pahnert 

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