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Old 07-16-2008, 06:53 PM
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Energy credit for LLC as lessor

Can an LLC claim an energy tax credit if it installs Solar technology in a building that is leased to members of the LLC?

Will the LLC still be able to claim the tax credit?

Last edited by TaxGuru : 07-18-2008 at 12:30 PM. Reason: Inadvertently edited
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Old 07-18-2008, 12:28 PM
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Absolutely! provided it meets the the IRS strict guidelines. There is no reason why the LLC would be precluded from claiming this energy tax credit. In fact, tax code is encouraging businesses to invest in this new technology and take advantage of the tax credit.

Who claims the Solar Tax Credit if the LLC invests in the technology?
As with all Tax Credits, such as Solar Energy or R & D Credits, if the qualified investments are made, these tax credits flow through on the K-1 for each individual shareholder based on his or her percentage allocation.
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