crazytom
Posts: 4
Joined: Sat Feb 15, 2014 11:49 am
Delivery Date: 01 Apr 2014

Leaf Purchase, Solar Install + Tax Rebates

Mon Feb 17, 2014 3:18 pm

Here's a questions I have yet to find an answer for.

Citizen A purchases in one calendar year:

1) New Nissan Leaf (eligible for $7500 federal tax rebate)
2) Rooftop solar PV (eligible for 30% federal tax rebate)

The EV rebate cannot be carried over from year to year. It must be used in the tax year of purchase.
The Solar PV rebate CAN be carried over.

The $7,500 question is:

If Citizen A has a total tax liability of $10,000, EV credit of $7,500 and PV credit of $10,000:

1. Can the EV credit be taken in it's entirety for the first year + $2,500 of solar credit, leaving $7,500 solar credit to be carried over to the following year?

OR

2. Does the Solar Credit need to be applied first, leaving $0 of tax liability to apply the Leaf credit, resulting in the loss of rebate?

QueenBee
Posts: 1564
Joined: Sun Aug 08, 2010 5:14 pm
Delivery Date: 20 Jun 2011
Leaf Number: 2062
Location: Bellevue (Seattle), WA

Re: Leaf Purchase, Solar Install + Tax Rebates

Mon Feb 17, 2014 4:45 pm

Obviously th fair and right way for the IRS to handle this is that the EV credit is used first and then the remaining PV credit is carried forward. I asked my tax attorney S.O. your question and this was her response. Obviously verify this for yourself and don't expect that the software used to prepare your return handles it correctly.

"I just put it in the software and its not allowing the credit, but I don't think that is correct. If you look closer, the form allows you to take both the EV credit, then apply the solar based on your tax liability after the EV credit.

Line 14 of Form 5695 (Residential Energy Credit) asks for limitation based on tax liability - And this is the line which enables the credit carryforward to the next year.

See page 5 of:
http://www.irs.gov/pub/irs-pdf/f5695.pdf

The publication says you specifically get to add the amount from line 8936, line 23 - $7500 (8936 is the form that I ran the EV credit) then subtract that amount from your from your total tax liability 10,000 less 7500 = 2500


Enter on Line 14 of 5695, gives you a 7500 of credit carry over to 2014"

crazytom
Posts: 4
Joined: Sat Feb 15, 2014 11:49 am
Delivery Date: 01 Apr 2014

Re: Leaf Purchase, Solar Install + Tax Rebates

Mon Feb 17, 2014 5:17 pm

Thank You!!! Thank You! Thank You!

You're awesome!

armmynissanleaf
Posts: 97
Joined: Wed Feb 05, 2014 7:27 pm
Delivery Date: 05 Feb 2014

Re: Leaf Purchase, Solar Install + Tax Rebates

Mon May 19, 2014 12:44 pm

How can I find about the solar rebates in my state? North Carolina.

thank you
Always do acts of kindness in this world.
TorqueNews Nissan

AndyH
Posts: 6384
Joined: Fri Apr 23, 2010 3:43 pm
Location: San Antonio

Re: Leaf Purchase, Solar Install + Tax Rebates

Mon May 19, 2014 12:46 pm

armmynissanleaf wrote:How can I find about the solar rebates in my state? North Carolina.

thank you

Start here:

http://www.dsireusa.org/
"The stupid become extinct."-Bill Mollison
2018 Outlander PHEV
2015 smart Electric Drive (lease ended Feb, 2018)
OpenEVSE Plus DIY

smkettner
Posts: 7143
Joined: Mon Aug 09, 2010 10:13 pm
Delivery Date: 26 Feb 2014
Location: Orange County, CA

Re: Leaf Purchase, Solar Install + Tax Rebates

Mon May 19, 2014 6:38 pm

Lease the LEAF and have no worries.
1 bar lost at 21,451 miles, 16 months.
2 bar lost at 35,339 miles, 25 months.
LEAF traded at 45,400 miles for a RAV4-EV

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