Federal tax credits for solar under the new administration

[jefrank]

I guess this belongs here since it's not Lightning or even EV specific.... Been looking at adding solar. Have quotes (higher than expected) in hand and trying to decide what to do in light of the current administration's actions to unilaterally freeze funds in various areas over the past week. Without the 30% tax credit, I'd have to say my solar plans go out the door, unless their absence somehow drives my estimates way down. I wouldn't typically be worried about changes affecting the current tax year, but this is not a typical administration or Congress. How concerned should I really be?

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[TaxmanHog]

Until the law is amended, plan your project and execute it as quickly as feasible.

Changes that occur, ideally would begin the following year, but they can also happen upon signing into law, with an effective cutoff that date forward.

No one really knows how quickly the Congress, the body responsible for making law will act!

 

[Grumpy2]

Congress isn't stepping up, I would say forget any Fed money for solar until we have more information. His "executive" decision stopped disbursements even to ongoing contracts such as charging stations. I can't see that is possible, but we will see ...

 

[Karlos]

For the moment at least, tax law can't be changed without Congressional action. I'm contemplating adding to my existing solar installation, not concerned a bit.

 

[Grumpy2]

I doubt anything within Biden's Climate programs will survive. Its all about retribution.

Expecting a Fed tax refund related to Climate in April 2026 seems a significant risk at this time ...

 

[Zprime29]

I got my solar with the 30% rebate in 2018, well before anything Biden pushed. The only concern is if you want Chinese made panels.

 

[TaxmanHog]

Effective Dates are honored, he understands contract law !

 

[bmwhitetx]

Google search shows apparently Congress can and has changed tax code with retroactive dates. Here is one example when Biden wanted to increase the capital gains tax retroactively. Don't know if Congress followed through but Supreme Court says it's legal:
https://www.forbes.com/sites/jeffre...congress-really-increase-taxes-retroactively/

Google shows other instances. Once a policy is announced, I think all bets are off, especially given the current makeup of all three branches of government.

 

[TaxmanHog]

Google search shows apparently Congress can and has changed tax code with retroactive dates. Here is one example when Biden wanted to increase the capital gains tax retroactively. Don't know if Congress followed through but Supreme Court says it's legal:
https://www.forbes.com/sites/jeffre...congress-really-increase-taxes-retroactively/

Google shows other instances. Once a policy is announced, I think all bets are off, especially given the current makeup of all three branches of government.

It's possible but unpalatable from a political strategy point of view.

Dramatically changing tax policy (to increase taxes - nobody tends to mind much when you lower their taxes) more than halfway through the year when many individuals have already acted would likely be unpopular.

 

[bmwhitetx]

It's possible but unpalatable from a political strategy point of view.

I agree if it raised taxes on his base. But this would actually make his base happy - so very palatable. Hopefully Congress can hold the line at an effective date on passage and not retro.

 

[broncoaz]

I’m collecting the credit for my 36 panel solar install in 2024. Now that I have two EV’s I’m contemplating 12 additional panels in 2025 if my controller will accept them. I don’t need more panels, but with the Lightning I‘m calculating being over by 1,000 kWh compared to the first year’s 16.7 MWh production. The panels and micro inverters are about $5K for the parts. If they are basically wiring into the existing controller I’m hoping it could be done and installed for $10K.

 

[jefrank]

For the moment at least, tax law can't be changed without Congressional action. I'm contemplating adding to my existing solar installation, not concerned a bit.

This administration doesn't care about norms or Congressional approval so I'm definitely concerned. I'm already not sure that the quote isn't inflated by enough that the installers are taking a large chunk of the tax credit, but my options around here are fairly limited. Went through EnergySage and only had 2 companies respond. The first is so ridiculously high that it was a nonstarter. The second is half the the first, but still $100k with ground-mount (only option for me) panels, 2 powerwall batteries, electrical upgrade to 300a service, and a LOT of boring to get the wires from the panels to my house due to my property layout. I could ditch the batteries to knock the price down some, but otherwise, I don't have a lot of options unless I want to play contractor myself... and I don't have the time for that.

 

[Tfarrell73]

My 6kw system installed in Feb 24 cost 18k with 40 amp ev charger through a group county wide purchase. After state and fed rebates it cost under 6k IF my FED rebate comes through my taxes this year

 

[TaxmanHog]

My 6kw system installed in Feb 24 cost 18k with 40 amp ev charger through a group county wide purchase. After state and fed rebates it cost under 6k IF my FED rebate comes through my taxes this year

NOTHING, has changed Tax Year 2024 law!

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