I think the bottom line is that you should talk to your tax advisor to
determine how to treat the SREC income for tax purposes.
Jim Elkind
(m) 508-517-0800
-----Original Message-----
From: Worth Robbins [mailto:worthr...@gmail.com]
Sent: Friday, October 21, 2011 3:53 PM
To: al...@knollwoodenergy.com
Cc: Jim Elkind; ebroadbent Broadbent; Tim Clark; Ruth Silman; Steven Strong
Subject: Re: SRECs taxable?
Alane,
Thanks for your call, confirming that all of the answers I found may be
right, that there have not been any definitive determinations by IRS, that
each person should let their tax advisor or accountant decide what is right
for them.
You also let me know that Knollwood Energy does not issue 1099's unless
requested to do so, further underscoring the fact that it is up to the
recipient to decide. This is consistent with the party line from MassCEC,
who issues 1099 to both customer and integrator for Comm Solar grants, also
leaving it to the individual to decide appropriate treatment.
Finally, you indicated interest in providing SREC processing for the
community solar garden, and advised me to contact you in early December if
we want to proceed. You indicated that right now, it looks like the market
may go long in 2012, and almost certainly in 2013, because of the
significant amount of new production in the pipeline, much of it
multi-megawatt, and this could significantly reduce SREC values, perhaps
approaching the $285 floor.
Thanks for the quick response to my questions, and for the forecast.
Regards,
Worth
On Oct 21, 2011, at 10:09 AM, Worth Robbins wrote:
> Alane,
>
> Several Solarize participants have asked the question, is SREC income
taxable?
>
> I have tried to find the answer, but at best, it's a mixed bag.
>
> I have found everything from:
>
> *yes, but not until it exceeds the property owner's installed cost
> (after deducting for grants and tax credits)
>
> *yes, period
>
> *no
>
> *don't ask, it hasn't been decided
>
> *don't report it, but don't be surprised if IRS comes after you later
>
> We also have the question as it pertains to a community solar garden. We
are heading toward a 200 kW array, owned by an LLC which is totally owned by
the residents whose capacity will be virtual net metered to their
residential property, with SREC income coming to the LLC to be distributed
to owners. If SREC income is taxable, we will expect to report the income
and pay the taxes within the LLC.
>
> Do you know the answer(s)?
>
> If not, can you suggest someone who does?
>
> Thanks,
>
> Worth Robbins
> Solarize Harvard volunteer
> 781-258-8436