No credit where wind or solar gear is leased to a third party
What the document says“No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.”
The section inserts a new subsection (i) into section 48E of the Internal Revenue Code of 1986 denying the credit for a qualified investment in property described in paragraph (1) or (4) of section 25D(d) where the taxpayer rents or leases that property to a third party during the year. It also adds a new subsection (e) to section 50 providing that ownership of geothermal heat pump property is worked out without regard to whether it is readily usable by someone other than the lessee or service recipient.
What the document actually says“No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.”
No credit is given where the gear is rented or leased out. That covers two kinds of home energy property.
The bar bites for the whole tax year. A separate rule covers ground source heat pumps. There ownership is judged a different way.
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