Since I am self employed and use a car for work from time to time (i.e., business use), can I claim the 26% solar tax credit for my Aptera? In my case, it would be charged 75% or more from the sun, and I file a schedule C and pay taxes, it seems I could claim 26% of the solar / batteries as a tax credit.
If I wanted to do this without using the commercial part of the credit, I would probably need to make sure v2H (vehicle to home) works since it has to support your primary or secondary residence AND be 100% charged from solar, though I doubt they audit that part, but it would be hard to claim with a straight face on a car.
Any accountants have a reason I couldn't claim it in my business? The credit was NOT written with this thought in mind so there seems to be gaps, which yes, this whole idea exploits.... I don't see anything that excludes me from claiming it.
Serious accountants that I know just use Turbo Tax or H&R Block software to file their taxes, one I know actually charges people and then just plugs the numbers in there. My background is finance, I use it also. It analyzes audit risk for you, though I learned the other overall analysis about audit risk elsewhere. But yeah, it's good to make sure you do everything right, and a specialized tax accountant could possibly save you more.
I would suggest consulting your tax advisor. Aptera can not authoritatively comment on tax issues. that is between you and the government with the council of your tax advisor
Ahh, yes, camping setup. Actually, its clear that solar panels on an RV do qualify, but in that case, the solar panels have a line item cost when built as an option to a new RV, or a specific cost to install afterwards. In addition, the RV can qualify as a second home. In the case of the Aptera, it is effectively the cost of the car (perhaps minus the tires). Fortunately, there is some built in solar and of course, a built in battery.
That is interesting. The Aptera has a camping setup so it technically could be considered a home anyways. You are incredibly unlikely to be audited for doing something like that unless you make over about $250k a year. I've seen the statistics of income threshold for being audited, and even with a very low percentage rate of audits, what you're referring to isn't a clear discrepancy, so the chance becomes even lower. Then, if you are audited, that's not really a big deal, claim ignorance.
For anyone who wants to take this question seriously (and I asked more in jest, but then as I researched it more.... perhaps you can....)
Solar tax credit is the credit you get for installing solar panels (usually on your house) which can include a battery as well. Basically, think Tesla powerwall. The battery system has to be installed as part of the solar project, though I think you have a year to do it.
The car clearly has solar and a battery, which is what started me thinking about this. For most homeowners trying to claim the solar tax credit there are enough road blocks that make it very impractical if its a car. Those roadblocks are not the same if you happen to own / run a business.
That said, in a quick review, it looks like not only can you claim the solar tax credit, but you can then also claim accelerated depreciation for the car.
I'm basing this on a quick read through of:
https://www.energy.gov/sites/prod/files/2021/02/f82/Guide%20to%20the%20Federal%20Investment%20Tax%20Credit%20for%20Commercial%20Solar%20PV%20-%202021.pdf
The catch is the need to charge the battery at least 75% from solar. I'm sure nobody will get you for a percent or 2 either way, but if your driving a lot, you better have solar on your roof to claim you charged from that. There isn't any requirement that the 75% solar charge come from the solar panels on the car, just from solar.
The highlights from the pdf for the requirements are:
Eligible Projects To be eligible for the business ITC (section 48 of the tax code), the solar PV system must be:
• Used by a business subject to U.S. federal income taxes (i.e., it cannot be used by a tax-exempt entity like a charity)
• Located in the United States or U.S. territories (though can only be used against federal income tax obligations)
• Systems must use new and limited previously used equipment
• Not used to generate energy for heating a swimming pool.
Ok, I probably have a year (or more) to figure this out.
Hi Dan. I too am not an accountant, but I stayed at a Holiday Inn once before. I like your thinking as well. Keep us informed please.
I'm not an accountant and I've never played one on TV, but I do love your creativity!!
On a lighter note, I would be remiss if I didn't observe that the Aptera is not a car with a straight face. I you look at night pictures of the Noir from the front, it definitely is smiling brightly, if not broadly grinning.
(Apologies for the interruption, sometimes I just can't help myself 😒)