This is a rather complex issue I’m trying to work out. My goal is to take advantage of both the federal and state renewable energy incentives by purchasing a PV system for my parents home ~ (my legal inheritance), who live in PA where there is currently a generous state grant which stacks (fairly certain) with the Fed. tax credit. I currently work in NC where I’m renting an apartment.
I have no intention of touching real estate right now so buying my own place is out of the question.
This is the complication. To get the state grant, you must own a home in PA, so my solution is to have my folks deal with the solar installer and claim the grant. However, they do not make enough taxable income to benefit from the rather large 30% federal credit, so I would have to somehow take this credit on my own taxes, which would put the money back in my pocket in 1, maybe 2 fiscal years.
Problem is, the Federal credit requires you to be a homeowner (anywhere) in the United States to claim the residential tax credit. Would it be possible for my father to somehow add me to the house deed as a joint/family owner and enable me to claim the federal credit on my taxes? IRS form # 5695. I am very unfamiliar with how joint home ownership works, so I’d appreciate a knowledgeable answer.
In case it matters, my parents are both alive and legally married.
And anyone tax-savy enough to tell me 100% if joint-ownership would qualify me or not?
http://www.portal.state.pa.us/portal/server.pt/community/in_the_news/10475/pa_sunshine_solar_program/553019
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=1
This question will be a mute point after July 2010.
More Pages:
- Can I contract to buy my neighbor’s federal tax credit from installing solar panels on his roof?
- Solar Energy: Energy Tax Credit For Home Solar Panels. Can This Credit Be Carried Forward And/or Backward Years? (11/10/2011)
- Solar Energy: Can The Federal Tax Credits For Energy Efficiency Improvements Be Used By Condominiums? (2/13/2012)
- Solar Energy: Would This Apply For A Company Building A Home With Solar Panels? (4/11/2012)
- Solar Products: What Are The Details Behind Receiving A Tax Cut Or Tax Break After Purchasing Alternative Energy Products? (4/10/2012)
{ 2 comments… read them below or add one }
” means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer.”
You don’t own the house. While you expect to inherit it someday, it’s NOT yours.
Even if your father adds you to the title, it’s still not your principal residence, it’s theirs.
The obvious complication is that you want a tax credit you are not entitled to. Your parents don’t need the tax credit (it only reduces taxes, it doesn’t create a refundable credit).
you have to be installing it on your personal residence, being on the mortgage does not qualify as your residence
by the time this will be your residence, the energy credits, and maybe better ones will probably be available, this energy stuff has come and gone in the past and probably will come back again, wait