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Level 4
February 17, 2022
Question

Solar panel repair

  • February 17, 2022
  • 1 reply
  • 5 views

Client installed  solar panels and a geothermal heating system in 2016. Took credit in 2016. In 2021 the client had to make repairs to the system. Cost was $700. IRS instructions for form 5695 is silent on repairs. Can we take the credit again, If so what IRS regulations (pub) governs?

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1 reply

qbteachmt
Level 15
February 17, 2022

It has to relate to Original Installation. Example: new batteries = no. That's repair from wear and tear. But, a change from wet batteries to Power Wall, and the hookup of Power Wall, is a new installation.

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nmr12354Author
Level 4
February 19, 2022

What IRS pub governs that?

qbteachmt
Level 15
February 19, 2022

Form 5695 (I assumed residential) and you can google, and you will find lots of discussion and reference to private letter rulings as well as Notice 2013-70. Here is a good example:

https://www.thetaxadviser.com/newsletters/2019/aug/solar-energy-credit.html

 

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