Solar Tax Credit ....

[LandoLeavesLand]

Hello, I have heard of other liveaboards (in the US) getting a solar tax credit for installing new solar systems on their boat as people do with their houses. I live on my boat and recently purchased new solar panels, cables, batteries etc. My question is when going to file form 5695 everything seems pretty easy but my only question is what address to put down when it asks what's the home address this was installed at. If I am at a dock or boatyard for a good amount of the year, should I put one of these addresses? If anyone has experience with this I'd be extremely greatfull for your input.

[rslifkin]

When I did mine for the boat, I think I put down the address and slip number for our home marina. Boats can be considered a secondary residence and are correspondingly eligible for the federal solar tax credit, so I wouldn't see an issue with doing it that way.

Do check on any state tax credits, however, as some of those only apply to your primary residence. I couldn't take the NY state credit because of that.

[S/V Illusion]

Seek tax advice from a tax lawyer or accountant, not opinions on a boating forum

[LandoLeavesLand]

@ S/V Illusion ... thanks, ... not seeking opinions ... seeking experience.

[S/V Illusion]

Originally Posted by LandoLeavesLand

@ S/V Illusion ... thanks, ... not seeking opinions ... seeking experience.

Thought you would prefer knowing the relevant tax code applicability, not someone’s experience (read - luck) of not getting caught violating it.

[BlueH2Obound]

We used our marina address, where we conducted the install.

A couple of notes on what you can include:

• Solar panels
• Solar panel support structure, if specifically required to mount the panels
• PV (solar panel) wiring, connectors, wire ties, though deck grommets, etc
• Circuit breaker boxes and breakers
• Charge controllers
• Charge output and battery monitors
• Batteries . . . ahhhh, batteries, see note below:

Per the advice of a certified tax accountant intimately familiar with the legal requirements of claiming the solar tax credit:

The cost of batteries, battery wiring, switches, etc can only be claimed if the solar panels are the only charge input into the battery bank. For example, if you initially set up your house bank to be charged by alternator and battery charger, or inverter charger, than you cannot add the cost of the batteries into the amount you claim on the solar tax credit.

Knowing this, we designed a standalone system, whose batteries only electrical charge input came from the solar panels, so we met the legal requirement allowing us to claim the entire amount, including batteries, wiring, etc.

Sadly, after a period of time, we discovered that occasionally, conditions existed where the solar panels could not keep up with the demand, and we were forced to redesign the system slightly, allowing the batteries to charge from other sources. This we documented in our maintenance log book, as well as with the system diagrams.

We are just over year into our solar venture on our boat. We currently have 2,880 watts of solar and are loving it! We can anchor out and never have to run a generator.

[LandoLeavesLand]

Thanks for your response ! Great to hear your system is working nicely for you! Cheers.

[Ryban]

Sadly, after a period of time, we discovered that occasionally, conditions existed where the solar panels could not keep up with the demand, and we were forced to redesign the system slightly, allowing the batteries to charge from other sources. This we documented in our maintenance log book, as well as with the system diagrams.

This part seems a little disingenuous. With the exception of having an electric motor on your boat as your propulsion source (and maybe you do!), it's very unusual to not have your battery bank connected to your alternator output in some capacity. I don't think you violated any tax laws, but I also feel like this is easily abused such that a "redesign" of the system is necessary a few months after claiming it as a tax credit.

[BlueH2Obound]

Originally Posted by Ryban

This part seems a little disingenuous. With the exception of having an electric motor on your boat as your propulsion source (and maybe you do!), it's very unusual to not have your battery bank connected to your alternator output in some capacity. I don't think you violated any tax laws, but I also feel like this is easily abused such that a "redesign" of the system is necessary a few months after claiming it as a tax credit.

The solar tax credit wasn't really written for boats or RV's. It was primarily written for dirt houses or buildings. Batteries weren't typically covered if they were hooked to chargers from the grid. I was just trying to give the user some advice since he mentioned batteries.

My information/opinion is worth exactly what you paid for it, use it, delete it, whatever.

Note: No laws were broken in this post, nor were any animals used for testing (just in case you were wondering).

[dannc]

Originally Posted by BlueH2Obound

...Per the advice of a certified tax accountant intimately familiar with the legal requirements of claiming the solar tax credit:

The cost of batteries, battery wiring, switches, etc can only be claimed if the solar panels are the only charge input into the battery bank. For example, if you initially set up your house bank to be charged by alternator and battery charger, or inverter charger, than you cannot add the cost of the batteries into the amount you claim on the solar tax credit.

Knowing this, we designed a standalone system, whose batteries only electrical charge input came from the solar panels, so we met the legal requirement allowing us to claim the entire amount, including batteries, wiring, etc.
...

That is really good information that I did not know. Reading up on the Tesla Powerwall years ago, they stated that one could not charge via a generator, which I took to be a technical limitation, but maybe it was to comply with tax code....

Thanks,
Dan