I own a home that I rent out for residential use. I am considering converting the home to solar power with roof panels. The installer says that the solar system qualifies for the 30% federal tax energy credit. However, tax literature is confusing on this subject as, some, but not all, reports indicate that solar power installation for residential rental property does not qualify for the 30% federal tax credit; rather, the installation expense should be depreciated over 5 years as a business expense. Thus my question: does solar panel installation for rental property qualify for the 30% federal energy tax credit, or is installation cost a business expense to be depreciated over 5 years?
