This is the year you installed solar power on your RV. While you can now be off-grid, which is exciting, you also qualify for the residential energy credit on your taxes for that new solar power system.
What’s that you ask? The residential energy credit is non-refundable credit on your taxes for your new solar power.
Even better news… the solar tax credit was extended to cover 2021, 2022 and 2023 so there’s still time to add that solar and get a tax credit. It was originally set to expire December 31, 2021.
The credit is 26% for 2021 and 2022 and decreases to 22% for 2023. It is set to expire December 31, 2023 unless it gets extended again. You never know.
Either way I wouldn’t delay if you plan on getting solar for your RV in the couple of years.
Thanks for this information. Very helpful!
What about travel Van’s? Does the IRS accept them as secondary residences for the solar tax write off? How about the auto loan interest?
The bedroom is not ‘closed off’ which is the only item that doesn’t seem to fit the IRS description I read. The DMV of course does count it as an RV. Does the IRS consider or ‘require’ the DMV certification?
Any experience or information would be appreciated.
Yes. A van would qualify as long as it has a sleeping area, kitchen space, and a bathroom. Loan interest qualifies as well as long as the loan is secured by the vehicle and not a personal loan. Also, most full-timers don’t qualify to itemize deductions where is where the interest gets taken.
Can batteries be included for the tax credit if they are also capable of being charged by shore power, generator or alternator?
If you plan to charge them via the grid or a generator, then no.
I’m reasonably certain that your information about getting the credit for batteries is incorrect. The solar credit doesn’t apply to items that aren’t solely for the solar installation. The panels, wires, mounting brackets, controller etc. are only for solar, so they qualify for the credit. Batteries are also charged by generators and shore power, and are not solely for the solar installation. Please check the IRS regs on this before you try to deduct the cost of batteries.
Hi James,
We reached out to Heather for a response to your comment. Here is what she shared:
“The IRS guidelines include solar energy storage (batteries). Solar wouldn’t do much good if there isn’t storage for the energy for nighttime and cloudy days. Those who upgrade to solar also upgrade their batteries to store that energy and the primary purpose of the batteries included in the solar install are for solar energy storage.”
Are inverters included in the solar equipment? They are necessary to convert from 12v to 120v.
Yes. Inverters would count if they are necessary for solar power.