Solar on 1 to 4 Unit Rental Properties

[Brian Davis]

I have recently been seriously considering adding solar to all of our rental properties. I was planning on either setting up a company to lease the panels back to my properties or to simply have the LLC finance the panels through a loan using a UCC-1 filing.

There is currently a 26% tax credit in year 1 along with the ability to use bonus depreciation on the system of 87% (with a 5 year life). Either the company leasing the panels to my rentals or my rentals could take these tax benefits. 

I am posting here to see if anyone has done this or has any knowledge of this.  If so, please share.

[Tanya F.]

Quote from @Brian Davis:

Yes, But they say the credit may be taken under section 48. Its a difference of where the tax credit is taken from what I can understand.  See this link with accountants discussing it on intuit:  https://ttlc.intuit.com/commun...

Also, see https://www.thetaxadviser.com/...
and https://news.energysage.com/so...