Tax return question

[Carrie]

Does anyone know whether when doing 2011 tax returns, one should claim
credits for money paid as deposit or installment paid in 2011 for a
solar installation that will not take place and be completed until
this tax year 2012?

Thanks!
Carrie Fraser

[Jim Elkind]

Carrie,

As always, the disclaimer first...talk to your tax advisor to be sure.

I read somewhere (I think it was an IRS publication) that you cannot take
the tax credit until the system is operating. If my recollection is
accurate, you would not be able to take the tax credit for the deposit on
your 2011 taxes and you would take the tax credit for the entire system cost
net of grants on your 2012 taxes.

Hope this helps.

Jim Elkind
(m) 508-517-0800