Tax credits are important elements to help make PV systems more affordable, but taking advantage of them can be tricky for co-ops and condominium associations, which don’t typically owe a lot of income tax. Fortunately, tax credits can be passed on to residents to reduce their personal taxes. To do this, the association assigns in writing a proportional share of the PV system’s cost. The residents claim the credits when they file their tax returns, and then the co-op collects the amount of the tax savings from the residents. Issuing letters and collecting funds can be cumbersome, but can save up to 30% on federal taxes, and more if your state also has tax credits. Work with a qualified tax professional to ensure compliance with the law.
