Nathan Sosa, the Head of the National Tax Department at Hall CPA, joins to shed light on solar tax credits for real estate investors. He explains the ins and outs of the 30% investment tax credit, highlighting eligibility for residential and rental properties. The crucial role of material participation in accessing these credits is made clear, and Sosa discusses the legitimacy of syndicated solar investments. He emphasizes the need for due diligence while laying out actionable tips for investors looking to capitalize on solar tax benefits.
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30% ITC Plus Depreciation Creates Double Benefit
The solar investment tax credit (ITC) currently gives a 30% dollar-for-dollar tax credit on qualified solar costs.
Businesses can also claim depreciation (including bonus depreciation), creating a combined tax benefit beyond the credit.
volunteer_activism ADVICE
Act Fast For Residential Credits
Install solar on your primary residence before December 31, 2025 to qualify for the residential 30% credit.
Ensure construction is completed by year-end to claim the credit.
volunteer_activism ADVICE
Rental Credits Last Until 2027
Rental properties keep the ITC but the extended rules change and the rental-specific credit availability ends in 2027.
Track the changed code sections and plan installations before that sunset.
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In this episode of the Tax Smart REI Podcast, Thomas Castelli and Nathan Sosa, Head of the National Tax Department at Hall CPA, dive deep into solar tax credits: how they work, who qualifies, and whether they can truly offset your tax liability as a real estate investor.
From residential installations to short-term rentals and syndicated solar investments, Thomas and Nathan unpack the real opportunities and limitations of this increasingly popular strategy. They break down how the 30% credit applies, what deadlines matter, and why material participation plays a critical role in determining whether your solar investment is active or passive for tax purposes.
You’ll learn:
- How the 30% solar tax credit works for personal, rental, and business properties
- The key deadlines for claiming residential solar credits before they expire in 2025
- Why material participation determines if your solar credits can offset active income
- How to combine bonus depreciation and solar credits for a “double benefit”
- The truth about syndicated solar credit deals and whether they’re legitimate
Whether you’re curious about installing solar on your own properties or exploring syndicated solar investments, this episode gives you a clear-eyed look at the tax benefits, the fine print, and the pitfalls to avoid before making your next move.
To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6
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Get the Solar White Paper:
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