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mlachick t1_j2b18hf wrote

I'm in the exact same boat, and I plan to take the tax credit in 2022. The rules specifically say they have to be installed. They do not specify that they must be "placed in service."

FYI - I am a tax professional, and I don't feel like this is a high-risk position.

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SirMontego t1_j2bcawc wrote

The "placed in service" date is the date to determine the applicable tax credit percentage. IRC section 25D(g).

The "when the original installation of the item is completed" date is the date to determine the taxable year to claim the tax credit. IRC section 25D(a)(1) and (e)(8)(A), with a minor exception specified in (e)(8)(B).

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[deleted] t1_j2bx2h4 wrote

[deleted]

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SirMontego t1_j2by1dv wrote

>But it says when installation is completed, not when placed into service?

The law uses both terms. Just click the link and read the law.

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Bouncing-balls t1_j2bz8ey wrote

If they are not turned on is the installation really complete?

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SirMontego t1_j2cvaaa wrote

Probably yes.

The IRS hasn't issued guidance on what "when the original installation of the item is completed" means. However, basic statutory construction says that it does not mean "placed in service" because those two terms appear in 26 USC section 25D.

To me, "placed in service" means everything is done and the panels are producing. Accordingly, "when the original installation of the item is completed" must mean something before "placed in service" and to me, the only reasonable thing is not yet turned on or not yet approved or given permission to operate by the utility. But that's just my guess.

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