Frequently Asked Questions
Learn about our services and how to get in touch with us.
Find out about tax incentives available for solar purchases.
Learn how the ITC incentive works and how to retrieve it.
Understand how the depreciation incentive can be used to maximize tax benefits.
RETE provides consulting and tax planning services to commercial and residential solar customers. Their most popular service is called the RETE consultation packet.
What does RETE do?
RETE is an acronym for Renewable Energy Tax Experts.
What does RETE mean?
Ensure that everyone who purchases solar panels receives all of the federal tax benefits that are available to them
What is RETE's Mission?
The answer depends on the service being provided. For RETE tax consultation services, the purchaser of solar panels pays for RETE's services. Many solar companies refer their customers to RETE and collect and send their customer's service fees directly to RETE for convenience. For solar construction project consulting, RETE is paid by the solar company.
Who is paying for RETE services?
Many customers choose to amend their prior year tax forms when they discover the benefits they missed on their original filing. - The information provided to you in this FAQ answer is general information and is not to be accepted, construed, or interpreted to be tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What if I didn't use RETE services and I have already filed my taxes?
Renewable energy tax experts employs and contracts with the leading tax consultants including EAs, CPAs, and Tax Lawyers in the solar industry.
What are RETE's qualifications?
No, however, RETE does have a list of trusted tax firms that are familiar with the tax strategies.
Does RETE file my taxes?
Not all tax preparers interpret the tax code and IRS guidance similarly. We have abundantly qualified staff, but each tax preparer must agree with the information they enter into the return. Suppose your tax preparer disagrees with our tax guidance. In that case, you will either need to forego some of your solar tax benefits or we can recommend another preparer that understands and agrees with our understanding of the treatment of solar incentives.
What if my CPA disagrees with RETE's treatment of my solar incentives on my tax return?
The customer engagement letter establishes the parameters of our relationship and states that we both agree to those parameters.
Why do I need to sign an engagement letter to work with RETE?
No. RETE does not offer or provide refunds.
Does RETE offer refunds?
Each RETE Tax Consultation Packet comes with an Audit Warranty Letter. If any of the information we provide to you in our RETE Tax Consultation Packet is selected for an IRS audit, we will defend the information free of charge.
What if I get audited by the IRS?
RETE does not work for or with your solar company. Your solar company may recommend our services to you. They may also collect our service fees for your convenience.
Does RETE work for or with my solar company?
208) 917-2156
What is the phone number for RETE offices?
If you are a current customer, please use the following link to find a good time to meet with us by clicking here. If you are not a current customer, feel free to find a good time to meet with by clicking here.
I have a question that I can't find on this FAQ page. Can I just call you or set up an appointment?
That's great! As long as your opportunity aligns with our mission, we are eager to listen. Please call our office to set up an appointment (208) 917-2156
I have a business opportunity for RETE.
That's great! Let's set up an appointment so that we can discuss your practice and the tax code surrounding solar
I am a CPA and I would like to get on RETE's trusted tax firms list.
That's great! Please use this link to set up a time for us to discuss the project.
I have a commercial project and I would like to discuss the specifics about solar tax incentives and my project
Please find a time for us to discuss your project using this link.
I would like to work with RETE - how do I get started?
You don't. However, with our knowledge of the tax code, we have helped thousands of solar purchasers fill out their tax forms correctly and capture millions more incetives that they would have missed without our services.
Why do I need to use RETE Services?
Who is RETE?
A nonrefundable credit can be used to pay your tax liability, but the IRS will not send a refund for any additional credit beyond your tax liability. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What is a non-refundable credit?
Federal tax incentives are claimed on your 1040 tax return. Most customers receive solar incentives as part of their tax returns. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
When do I receive my solar tax incentives?
A tax credit is used to pay your tax liability dollar for dollar. A deduction is a reduction in your taxable income. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What is the difference between a credit and a deduction?
You may be eligible for local city, county, or state incentives as well as federal tax incentives and grants.
What benefits are available to me when I purchase a solar system?
Not necessarily. RETE provides the necessary tax documents and a tutorial on inputting the data into most tax software. RETE believes it is a good idea to hire a professional CPA to assist you in filing taxes whether you purchased solar or not. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
I normally file my taxes myself. Do I need to hire a tax preparer if I purchased solar?
Many variables affect your refund. We recommend that you check with the IRS - here is a link - https://www.irs.gov/refunds - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
When will I receive my solar tax incentive and tax refund?
We maintain a list of tax firms that we recommend available upon request. Please email us at contact@re-taxexperts.com. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Do you recommend any tax firms to assist me with filing my taxes?
Some rebates may be considered taxable. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Are my state rebates for purchasing solar taxable and will I need to report them on my tax return?
If you use section 25 to claim your investment tax credit - no. If you use section 48 to claim your investment tax credit, you will pay back 20% for each year or partial year that you did not own the system (up to 5 years). - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Do I need to refund my investment tax credit if I sell or dispose of my solar panels?
If you use section 25 to claim your investment tax credit, no tax consequences are associated with moving. If you used section 48 to claim your investment tax credit - you may need to pay back 20% of your credit for each year or partial year that you did not own the system (up to 5 years). You also may need to claim income on the depreciation you have deducted. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What if I or my business move after I purchase solar panels?
It is clear to the RETE team that power credits from your power company are an economic benefit that is received when you provide power to the power grid. Economic benefits and "barter exchanges" are taxable. We recommend that taxable transactions be reported on your income tax return. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Do I need to pay taxes on the power credits I receive from the power company for producing solar power?
Tax Incentives
ITC credit is the common name for the Investment Tax Credit.- The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What does ITC credit stand for?
The federal ITC credit is equal to 30% of the cost of your solar system. This is a non-refundable credit. This does not guarantee that you will receive a check from the government for 30% of the cost of your solar system. - Please see the definition of non-refundable credit. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Will I be getting a check from the government for 30% of the cost of my solar system?
Form 5695 claims the investment tax credit when using section 25. Form 3468 claims the credit using section 48. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What is the the form 5695 and form 3468?
Tax code section 25 is for Residential Home Owners who purchase solar. Tax Code 48 is for businesses and other commercial activities involving investment in solar equipment.- The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What is the difference between tax code section 25 and tax code section 48?
When using code section 25, the taxpayer can carry the credit forward until the tax incentive program ends or until Congress states that this credit is no longer valid. When using code section 48, the tax credit can carry forward for 20 years before there is a penalty, and after the penalty, the credit carries forward indefinitely. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Do I only have 5 years to claim my investment tax credit?
Suppose your system qualifies for the incentive tax credit under code section 25, no. If your system qualifies for the incentive tax credit under section 48 and was installed after February 23, 2023 - yes - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I sell my investment tax credit that I earned by purchasing solar?
If your system qualifies for the credit using tax code section 25, homeowners must claim the credit when the system is operational and turned on. If your system qualifies for the credit using tax code section 48, homeowners can claim the credit in the year substantial construction of the project has started. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
In what year can I claim my investment tax credit?
The tax credit must be claimed in the year it is earned. - see the question "In what year can I claim my investment tax credit?" - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Do I need to use my investment tax credit this year?
We recommend asking an investment tax credit broker or lawyer for specific contracts and advice before you sell your investment tax credit. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
How do I sell my investment tax credit?
Most solar owners do not consider the income as passive due to material participation rules from publication 925. They pass the material participation test #2 - They "...provide substantially all of the participation in the activity of all individual for the tax year, including the participation of individuals who don't own any interest in the activity." - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
I don't do very much to earn the power credits I receive from the power company. Is net income/net loss considered passive income/loss?
You can sell your credit for whatever someone will purchase it for. We recommend websites like cleanenergymarketplace.com to research rules and current values before you sell your credit. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
How much can I sell my investment tax credit for?
The credit can be used to offset your tax liability in the year it was earned and the unused portion will offset your tax liability in future years. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
What if I owe taxes from previous years' tax returns. Can I use the ITC credit to pay for those taxes that I owe?
No. The investment tax credit only offsets federal income tax liabilities - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I use my investment tax credit to offset my state taxes?
No. The investment tax credit only offsets federal income tax liabilities - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I use my investment tax credit to offset my net investment income tax (NIIT) liability?
No. The investment tax credit only offsets federal income tax liabilities - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I use my investment tax credit to offset my alternative minimun tax (AMT) liability?
No. The investment tax credit only offsets federal income tax liabilities - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I use my investment tax credit to offset tax penalties?
No. The investment tax credit only offsets federal income tax liabilities - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I use my investment tax credit offset self employment tax?
No. The investment tax credit only offsets federal income tax liabilities - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I use my investment tax credit to offset my paroll taxes?
If you use section code 25, the unused portion of your credit will carry forward as long as the incentive program lasts. If you use section 48 to claim the investment tax credit, the unused portion of your credit will carry forward for 20 years before a penalty is imposed. The remainder of the credit will carry forward indefinitely. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
How long will my investment tax credit last if I don't use it?
When using code section 48, the owner of the solar system must own the system for 5 years to avoid credit recapture. If an owner sells or disposes of the system within 5 years of claiming the credit, 20% of the credit is recaptured for every year the credit is not under the original purchaser's ownership. (Example - owner sells the system after two years of ownership. - Recapture would be 60% of the credit = 3 years X 20% per year.)
What is the 5 year rule? What is credit recapture
Investment Tax Credit
No, depreciation deductions are not transferable. Only an owner of the equipment can deduct the cost of their solar equipment using depreciation. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I sell my depreciation incentive earned by purchasing solar?
There are many reasons why you may consider forming an LLC. However, you are able to claim depreciation on your solar equipment using the forms RETE provides in their tax consultation packet. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Do I need to start an LLC to claim depreciation on my solar equipment?
If the activity you use the solar panels for is considered an active trade or business, then you can depreciate the solar panels on your roof. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
Can I depreciate the solar panels on my roof?
Businesses can begin depreciating equipment when the system is put into service. - The information provided in this FAQ answer should not be accepted, construed, or interpreted as tax advice. Be sure to set up a consultation to discuss your specific tax situation.
In what year can I claim my depreciation incentives?
Depreciation recapture occurs when an asset is sold for more than the basis of an asset. It is the process of taxing the amount of depreciation previously taken on an asset when that asset is sold, as ordinary income at ordinary income tax rates.
What is depreciation recapture?
Depreciation
Yes. You will deduct the interest on your solar panels - You will need to separate interest from any other purchases with your HELOC (if any) from the solar panels.
I took out a home equity loan to pay for the majority or all of the cost of my solar panels. Can I deduct the interest on my tax return?
Deduct interest on line 16a of the schedule C.
How do I deduct my interest?
Your solar lender may not send you a form 1099 stating how much interest you paid throughout the year. You may need to calculate how much interest you can deduct.
Will I receive a 1099INT from my lending institution?
As a cash-basis taxpayer, you will only be able to deduct interest that was actually paid throughout the year.