Q: My CPA is asking what IRS code determines the tax incentive of a solar system contracted, purchased and paid in 2019?
My accountant believes it is when the system comes on-line, not when it is contracted or paid. Is this true? I need the tax credit for 2019, not 2021. Even though it was paid, contracted and installed in 2019, but because of construction will not be in service until next year.
A:
CPA is probably right.
See Notice 2013-70. https://www.irs.gov/pub/irs-drop/n-13-70.pdf
There may be additional facts and circumstances that would allow a credit in 2019 but generally you have to be making power to get the credit that year.
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