Does the Sect 48 solar credit reduce QBAI asset cost ?

This was a commercial rental property solar panel system placed in service in 2018.

Installed cost 200k

Credit was 30% of that = 60k

Depreciable Basis reduction for Federal 1/2 of the credit or 30k

So makes sense the amount of QBAI is the 200k-30k = 170k ?

Is there a mention of that in the regs etc? or just by definition of depreciable cost basis?

By QBAI do you mean qualified basis after investment, or what? Section 199A refers to UBIA, which is unadjusted basis immediately after acquisition. Assuming that is what you mean, we have this in the regs.

UBIA is determined without regard to any adjustments described in section 1016(a)(2) or (3), to any adjustments for tax credits claimed by the individual or RPE (for example, under section 50(c)), ...

. So I think your answer is no.

It's kind of interesting, but not really relevant, to compare the language in section 50(c),

(c) Basis adjustment to investment credit property
(1) In general
For purposes of this subtitle, if a credit is determined under this subpart with respect to any property, the basis of such property shall be reduced by the amount of the credit so determined.

,
with that in section 25D(f),

(f) Basis adjustments
For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.

. The headings say "adjustment(s)", yet basis adjustments are determined under section 1016.

You reduce the asset by all credits, whether state or federal. Current Internal Revenue Code,SEC. 1016.ADJUSTMENTS TO BASIS. 1016(a)(1)

Noobie, would you disregard the reg. I excerpted above, telling us to disregard credits? If so, why? Not only is it clear and specific, but it also makes sense considering how QBI is calculated and the purpose of the deduction.

Nilodop, what's the full citation for those regs?

Reg. 1.199A-2(c)(3)(i):

(3) Unadjusted basis immediately after acquisition—(i) In general. Except as provided in paragraphs (c)(3)(ii) through (v) of this section [relating to property acquired in a like kind exchange, involuntary conversion, nonrecognition transaction, and acquired from a decedent], the term unadjusted basis immediately after acquisition (UBIA) means the basis on the placed in service date of the property as determined under section 1012 or other applicable sections of chapter 1 of the Code, including the provisions of subchapters O (relating to gain or loss on dispositions of property), C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses). UBIA is determined without regard to any adjustments described in section 1016(a)(2) or (3), to any adjustments for tax credits claimed by the individual or RPE (for example, under section 50(c)), or to any adjustments for any portion of the basis which the individual or RPE has elected to treat as an expense (for example, under sections 179, 179B, or 179C). However, UBIA does reflect the reduction in basis for the percentage of the individual’s or RPE’s use of property for the taxable year other than in the trade or business.