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May 13, 2020
Question

ITC and Schedule E

  • May 13, 2020
  • 1 reply
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I file a Schedule E for a commercial real estate property and want to claim the ITC credit for a solar installation.  I believe I have to file a Form 3468.  Can I claim this credit if I am a Schedule E filer?  All the instructions are for Schedule C filers.

    1 reply

    Carl11_2
    Employee
    May 13, 2020

    I assume your setup would qualify as a "solar production facility"

    From what I understand, the ITC is a 26 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. The Section 48 commercial credit can be applied to both customer-sited commercial solar systems and large-scale utility solar farms. 

    Since it's commercial rental property it's covered under 26 U.S. Code section 48 which you can read at https://www.law.cornell.edu/uscode/text/26/48

    But in a nutshell, yes you can qualify for this credit if conditions are met. So that's why I suggest you read section 48 of the code.  But you may want to read first a more simplistic outline of section 48 at https://www.seia.org/initiatives/solar-investment-tax-credit-itc