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

[Bob Leigh (bobleigh]

At Cornerstone Cohousing in 2015, we were able to pass through somr or all
of the tax credits fromthe condo association to each homeowner, who then
claimed ghe credit on their individual tax returns.  We agreed that as each
household filed the return and perhPs received a refund, they would repay
ghe amount of the credit to the association.

I could find more details if needed.  Nitr that the possibilities may have
changed since 2015.

Bob Leigh
Cambridge MA

On Sun, Aug 14, 2022 at 3:53 AM Sharon Villines via Cohousing-L <
cohousing-l [at] cohousing.org> wrote:

> 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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