Using Form 3468 for commercial installation of solar panels @ $40K. The 30% credit is $12K - does my Form 4562 Depreciation of system have to be $28K? Help!

[buelfarm]

Specifically need to know if Depreciable basis is calculated net of 30% Solar Credit. 

[buelfarm]

Two other related questions:  Read about ITC on Fed & NYS ... will asset be depreciated net of those credits also?  Not taking Section 179, obviously... then, what Type of Asset & Asset Life?  Read 5 years, but don't know?

[sjrcpa]

OP follow up question here https://accountants-community.intuit.com/questions/1822861-commercial-solar-panels-depreciated-net-o...

[TaxGuyBill · Accepted solution]

Yes, the credit reduces Basis, which would put the Basis at $28,000.

[Bry]

I don't believe this answer is correct. 

https://www.irs.gov/pub/irs-pdf/i3468.pdf

"You must reduce the basis of energy property by 50% of the energy credit determined." So the basis would only be reduced by $6,000.