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Does the Inflation Reduction Act provide tax credits for energy-efficient improvements - such as the installation of solar panels - for owners of residential rental property?
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No. It doesn’t apply to rental property. But improvements to rental property are a capital expense.
While the property doesn’t have to be your primary residence, according to Turbo Tax, you can’t claim the residential solar tax credit for installing solar panels at any rental units you own. However, your rental property may be eligible for the business ITC under IRC Section 48, according to the U.S. Department of Energy.
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