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?
Solved! Go to Solution.
This discussion has been locked. No new contributions can be made. You may start a new discussion here
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.