Adjusted Basis When Getting Solar Tax Credit

[peteZ88]

How do I compute the adjusted basis of the solar electric system when I get a residential clean energy property credit of 30% of the cost?  Thanks.

[RobertB4444]

The adjusted basis of the solar electric system is the cost of the system less any rebates or discounts.  If you received a rebate from your local utility then you need to reduce the cost of the system by that amount.  

@pahnert 

[peteZ88]

Is the federal tax credit considered a 'rebate' for the purposes of reducing the adjusted cost basis?

[RobertB4444]

No.

@pahnert 

[peteZ88]

So, I can still depreciate the full cost of the solar electric installation, even after getting the federal tax credit?

[AmyC · Accepted solution]

Yes, the tax credit does not reduce your basis.