Cohousing-L Mailing List: Re: DYI solution for tax credits?

[Sharon Villines (sharon]

I think the tax credits have to go to a non-profit organization, a 501c3. One 
that doesn’t serve itself, but  exists for the good of others.

Sharon.

> On Aug 13, 2022, at 9:50 PM, David Mandel <dlmandel [at] gmail.com> wrote:
> 
> We're looking at installing solar generation on some of our roofs, first on
> two carports where EV chargers will live, then if possible on more
> sun-favorable roofs throughout the community, in a way that we could all
> share the cost and the benefit.
> Federal tax credits are available for solar installation, and that works
> well enough for individual homeowners who have sufficient income to pay
> taxes. But as a homeowner association our income tax burden is negligible.
> The typical solution for tax-exempt entities that want to install solar
> (say, on the roof of a church or a school) is to contract with specialized
> investors who become the actual owners of the system, get the tax credits
> ... and sell the power to the nonprofit entity at a discount while
> retaining a tidy profit as long as the tax credits apply (typically five
> years, I'm told, maybe 10 under the new federal legislation that just
> passed).
> So I'm wondering if there's a way to avoid using such a middle person and
> losing out on some of the tax advantages. For instance, what if some or all
> of our residents form a partnership or LLC that would operate similarly but
> pass on a much larger part of the profit to the community? Has anyone tried
> or maybe succeeded with such a plan? Or even if not, do you have some
> financial expertise to opine on whether this would be viable?
> Thanks,
> David Mandel
> Southside Park Cohousing in sunny Sacramento
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