What amount do I use for solar panels if I get a rebate from the power company? Do I use the amount before or after the rebate?

I fully paid for solar panels to be installed in 2018. My power company provides a rebate amount that I will receive in 2019. What amount do I list for the solar tax credit--the total amount paid or the amount minus the rebate?

847

Level 2

Jun 6, 2019 12:12:30 AM

As a "calendar year" taxpayer, you report events in the year they happen. Therefore, you will record your solar panels at the amount before the rebate. If/when you receive your rebate in 2019, you will show the rebate as "Other Income" in the year received.

New Member

Feb 9, 2020 7:14:47 PM

I have a similar question. The rebate was sent to the Loan Company to pay some of the total cost. Do I report the total cost or the amount after the rebate the loan company received. I had my rebate go towards the loan and I never got the check.

Ricky

Expert Alumni

Feb 10, 2020 9:32:33 AM

You would report the amount after the rebate. That represents the amount paid.

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What amount do I use for solar panels if I get a rebate from the power company? Do I use the amount before or after the rebate?