State tax filing

First, thank you for asking tax advice from a CPA instead of from a solar panel company.

You asked:

1)  Since the restructure of the entire roof was required, can I add the cost to the solar credit?

2)  If so, can I use the entire amount?  Of course, I could not have rebuilt only 66% of the roof since the entire roof bears the weight.

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1. If the engineering report specified that the entire roof be restructured in order to carry the weight, then this is a good argument that the structural part of the roof redo be includible in the credit calculation. Remember, at some point, the IRS has to depend on qualified engineers to determine what is and is not necessary to put solar panels on your roof.
2. As for the “entire amount”, I am not sure what “entire” refers to. If the entire framework supporting the roof had to be replaced because the entire roof is carrying the load, then this is a good argument for including the whole framework. However, I do not know to what extent the new roof will be includible in the credit. I would think that you would have to balance of putting the same material back on the roof after the reinforced framework versus the new metal roof. That is, the IRS might argue that if the new metal roof is much more expensive than a Homasote roof, then the whole cost should not be allowed, but only the difference between restoring the old roof covering and the new roof covering. It is much easier to argue that once you redid the framework that recovering the roof was a necessary part of the project since the roof wouldn’t be much of a roof if there was no roof cover (like shingles or tar paper or metal) so that should be included, but making the argument that you are going to install a more expensive roof cover than what was there would be a harder argument to support for me.

In short, the answer (to me) is that you are able to include in the credit calculate only the minimum coast necessary to carry and use the solar panels on the roof: which means the solar panels themselves, the wiring need to hook it up to the house, the structural improvements to support the new panels, and the minimum roof cover needed to recover the roof exposed by the rebuilding of the structural improvements to the framework (i.e., restore the function of the roof). Of course, I am not positive that I fully understand what your contractor intends to do to the roof, but I hope my thoughts serves as a guide to asking and answering your own questions. What it boils down to is what can you support if you are ever audited. Engineering study – good, expensive new roof cover (if it is more expensive) – bad.