Solar investment tax credit - business - deprecation

[josephfolsomcpa]

Regarding the solar investment tax credit for businesses, I understand that the credit is 26% of the qualified solar property and also that the basis in the business solar equipment has to be reduced by 50% of the tax credit from reading various articles. I can't seem to find the IRC code section or a publication that states that basis has to be reduced by 50% of the tax credit. Where can I find an actual IRS document that says this?

[George4Tacks]

IRS Pub 946 https://www.irs.gov/publications/p946#en_US_2019_publink1000107523

What Is the Basis for Depreciation?

The basis for depreciation of MACRS property is the property's cost or other basis multiplied by the percentage of business/investment use. For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1. Reduce that amount by any credits and deductions allocable to the property. 

[Terry53029 · Accepted solution]

See IRS form 3468 instructions quote page 6 "You must reduce the basis of energy property by 50% of the energy credit determined"

[josephfolsomcpa]

Thanks!  I read those instructions and just totally missed that.