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If I buy a QOZBP and put solar on the roof, does the full cost of the solar count towards the substantial improvement of the building?

Does solar count towards the substantial improvement even though I get a 26% federal tax credit on the solar back immediately and can depreciate the system at a very accelerated schedule?


Answers
  • Matthew Rappaport
    February 22, 2020

    The cost of the solar roof should count as a substantial improvement to the property.

  • Peter McNeil
    February 22, 2020

    The answer is yes. You can double up. The entity passes through the depreciation but the depreciation may be limited by T risk or passive loss rules.

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