I just now ran into the question with a client regarding taking the solar credit on a commercial self rental property. I understand the distinction between the 2 code sections. Section 24 does not apply. But I cannot find anything definitive that says the credit can be taken for solar commercial rental property. The credit is clearly allowable for business property, but is a rental activity a "trade or business" for purposes of this credit? If the credit was to be allowed for rental property, then the credit would be a passive activity credit and thereby possibly limiting the tax credit. Many years ago, the investment tax credit could only be used for property placed into service in a trade or business and a rental activity was not a trade or business. I agree, confusion. Still trying to figure out what to tell my client!!!
