@harveykatz wrote:
Reply to Champ:
In https://www.irs.gov/pub/taxpros/fs-2022-40.pdf under the section on Labor Costs,
When calculating the Residential Clean Energy Property Credit, a taxpayer may include the labor costs properly
allocable to the onsite preparation, assembly, or original installation of the qualified property and for piping or
wiring to interconnect the qualifying property to the home.
So back to the original post about credit for roof replacement, would the labor to replace the roof decking to support the panels be applicable on Fed. Form 5695?
no, because the roof improvement itself is not allowed.
Basically, the allowable cost is what it would have cost to install the solar panels on a structurally sound and adequate roof (parts and labor). The costs to make the roof structurally sound (materials or labor) are not allowed for the credit. If your contract does not specify the costs in this way, ask your contractor for a different breakdown, or make a reasonable allocation on your own (if audited, you can be asked to explain your reasoning).
