Cybertruck Federal Solar Tax Credit!?

[pricedm]

Yes I see why IRS is grumpy about the concept after reading IRS Form 5695-Instructions. "Clear as mud!"

"Form 5695 https://www.irs.gov/pub/irs-pdf/f5695.pdf

Part I Residential Clean Energy Credit (See instructions before completing this part.) https://www.irs.gov/pub/irs-pdf/i5695.pdf

5a Qualified battery storage technology

Does the qualified battery storage technology have a capacity of at least 3 kilowatt hours? (See instructions.)

If you checked the “Yes” box, enter the qualified battery technology costs.

Residential clean energy credit. The residential clean energy credit added a credit for qualified battery storage technology.

Battery storage technology costs are allowed for the residential clean energy credit for expenses paid after December 31, 2022.

See Qualified battery storage technology costs, later, for details.

You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, ...battery storage technology, ... [edited out irrelevant descriptions]

Qualified battery storage technology costs.
Qualified battery storage technology costs are costs for battery storage technology that is installed in connection with your home located in the United States and has a capacity of at least 3 kilowatt hours."

But alas on IRS page 2--as noted by @Nagilum post #28:

" Costs allocable to a swimming pool, hot tub, or any other energy storage medium that has a function other than the function of such storage don't qualify for the residential clean energy credit. "

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[pricedm]

Man, I'm not sure I'd 100% trust my friends with a 18K gift that they have to pass on to someone specific. lol. If I put it in writing that they had to give it to someone, seems like that just proves I was moving 90K to a targeted person's account, and now it's felony conspiracy to defraud the government or something. I'd be worried about so many things there.

Don't put anything in writing-- just pick trusted friends, family, and explain the gifting process. Let's say I give $18k each to my dad, mom, brother, and sister with the stipulation they re-gift to my daughter. Easy-peasy, provided you trust those in the gifting process.

 

[nevetsyad]

Why spell out what a qualified battery storage technology expenditure is in the same document then?

Form 5695 has to talk about pools and hot tubs because of 26 USC Section 25D(e)(3). In the title it calls out "Swimming pools, etc., used as storage medium". It's talking about trying to use pools and spas for tax credit. That's why the form references water based storage mediums being used for other purposes.

Battery requirements are clearly defined in their own section, in 26 USC Section 25D(d)(6):

(6) Qualified battery storage technology expenditure. The term “qualified battery storage technology expenditure” means an expenditure for battery storage technology which—
(A) is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and
(B) has a capacity of not less than 3 kilowatt hours.

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[nevetsyad]

The form includes this, because of the special instructions on 26 U.S. Code 25D(e)(3). As the subsection's title clarifies, they don't want people to claim a pool or hot tub as an "energy storage medium". They clearly didn't mean this to apply to batteries, as they have their own definition, as you quoted.

I'm going to take the 30% and if I get audited, let them fight me on that. I met the requirements for a battery backup, as clearly outlined. Worst case, I pay it back with interest, but it sounds like even the IRS can't clarify currently.

(3)Swimming pools, etc., used as storage medium -

Expenditures which are properly allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage shall not be taken into account for purposes of this section.

But alas on IRS page 2--as noted by @Nagilum post #28:

" Costs allocable to a swimming pool, hot tub, or any other energy storage medium that has a function other than the function of such storage don't qualify for the residential clean energy credit. "

 

[pricedm]

…I'm going to take the 30% and if I get audited, let them fight me on that. I met the requirements for a battery backup, as clearly outlined. Worst case, I pay it back with interest, but it sounds like even the IRS can't clarify currently.

Agree. My plan as well.

 

[nevetsyad]

Agree. My plan as well.

The real question is...configure now, or wait for the new version of the cyber cell to be released, with slightly higher energy density and faster charging? Really trying to hold off on buying full release day tech...

 

[PES_CT]

You can get a 30% Federal Tax credit on the installation and equipment of battery backup on your home. So I will submit my installation cost for the PowerShare system that comes with the Cybertruck. But is anyone considering putting a portion of the Cybertruck cost on there for the battery portion of the backup system (maybe $9200 powerwall battery cost)? Any tax attorney’s out there who might know if you could do that?

I very nearly didn't buy the Cybertruck because my solar system's AC microinverters were purported to not be compatible with the CT/Gateway. Since then I've been assured that the Cybertruck will operate as a giant Powerwall and, as such, should operate seamlessly with my solar. I bought on faith that the giant Powerwall will let my solar panels provide power and charge for the truck when the sun's shining. If anyone can confirm or deny that to be true, please speak up - my faith is weak.

 

[getsometom]

Sounds like we need a cybertruck CPA. Anyone want to take on?

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