solar on a commercial building

Technical topics regarding tax preparation.
#1
cathyv  
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Joined:
19-Sep-2018 7:08am
Location:
NEW YORK (NY)
A client with an S-corp operates out of a commercial building owned by the client individually, S-Corp pays rent. He is investigating putting solar panels in.

Any issues with him doing this under the rental activity rather than the S-Corp? Still fully eligible for the energy ITC for non-residential? I believe however application of the credit is subject to passive activity limitations in that event. I am leaning in that direction as he will produce more than he uses, and net metering to sell back to the grid around us has been barring people when the solar property is in different ownership than the real estate, but also if different than the electricity account, so we have to wade through the net metering issues and structure appropriately.

Likewise, any issues with the S-Corp performing the installation if they don't own the real property?
 

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