ToddL
New Member

Retirement tax questions

Unfortunately, an upgrade to your home's electrical service would not qualify for any tax credit or deduction and is not reported on your tax return. It would be an "improvement" to the property and its cost (materials and labor) would be added to the cost basis of the home.

"Leased solar panels" do not qualify for any federal energy tax credit. You would have had to purchase them in order to claim a tax credit. Some states, however, may provide tax incentives for leased energy efficient equipment.

From IRS Notice 2013-70

Q-15: May a taxpayer claim a credit for property that the taxpayer leases rather than purchases?

A-15: No. A taxpayer must purchase the qualifying property to claim the credits under §§ 25C and 25D.