Solar for rental: depreciate and take take credit?

[pbmunkey]

I bought solar for my rental. Am I able to depreciate it as a land improvement AND take the solar credits?

[KrisD15]

No, if you list it as an asset and depreciate it, the basis (your value/cost) must be reduced by the amount of the total credit. 

[AmeliesUncle]

Yes, you can take the solar credit on Form 3468.

Yes, you depreciate the solar.  However, it is generally depreciated over 5 years.  When entering the Basis/cost for depreciation, you reduce it by HALF of the solar credit.

[pbmunkey]

HALF? not decrease it by the entire credit as someone else had previously answered? 

2. does that apply to energy efficient water heaters and hvac?

[AmeliesUncle]

---

@pbmunkey wrote:

HALF? not decrease it by the entire credit as someone else had previously answered? 

2. does that apply to energy efficient water heaters and hvac?

---

Yes, for the business/rental credit, Basis is reduced by half of the credit.

Offhand, I can't think of any tax credits for a business/rental property for water heaters and HVAC.