IRS Offers Tax Credit for Community Solar Farms
September 2, 2015 Taxation in New Zealand
WASHINGTON D.C. – A new tax ruling made by the IRS may mean that the US could see a greater number of community-run solar energy projects being started in the country.
On September 1st the non-profit US group Clean Energy States Alliance announced that the Internal Revenue Service has recently issued a new ruling regarding tax breaks available to individuals using solar power generators, potentially paving the way for much greater implementation of such technology.
The ruling came in the form of a Private Letter Ruling sent to a Vermont based individual who was an owner in a shared community solar panel farm.
The IRS ruled that the individual was eligible for a Residential Energy Efficient Property Tax Credit of 30 percent improvements to properties which generate renewable energy, despite the fact that the property in question did not belong to him but was an off-site community project.
It was specifically noted that since the ruling came in the form of a Private Letter, it cannot yet be assumed that all taxpayers will automatically be eligible for the same tax treatment.
However, in the statement it was further noted that despite the limitation of applying the ruling to the wider set of taxpayers, it does still begin to pave the way for “…direct ownership of community-shared solar systems by multiple individuals“.
Photo By: Port of San Diego