House Hacking Federal Solar Credit

[Brandon Itkin]

I’ve searched the forums, and while I’ve seen many posts about solar, I haven’t seen any definitive answers on my following question.

I have a house hack in Denver which I am thinking about installing solar on. The cost of the system after financing would be less than the monthly electricity cost. That with the rising energy prices make me think this system could be a great cash flow as time goes on, as well as of course a great green energy source.

My question is because it is a HouseHack, can I still apply for the current 2022 federal tax credit of 26% on the system? I have seen conflicting information here on how this works when the property generates income. What happens when I move out in 2 years, do I have to repay the credit or is it set in stone after that first tax year being installed?

Second question is, if I can get that 26% credit the system still comes out to $22k and change afterwards. Can I then go and either A) expense that $22k against the income of my property for the tax year? Or B) depreciate that $22k system (or even the full pre-tax credit cost of $30k) over a 5, 7, 27.5 period to further increase tax deductions against the income from the property?

I appreciate all the insight on these forums, and hope this can lead to a valuable discussion for all!

(Yes I will be talking to my CPA soon about this as well, but would like to hopefully hear some real world/personal experience with this)