Is solar storage (Tesla Wall) qualified for 179 deduction

Taxpayer installed Tesla Wall (storage for solar panels). It has 30% tax credit. But, is it also qualified for Sec 179 deduction?

Thanks.

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Best answer by TaxGuyBill

Assuming it was purchased for use in an active business, I can't think of anything that would disqualify it for Section 179.

Don't forget that the Basis is reduced by half of the business credit.

Level 15

Assuming it was purchased for use in an active business, I can't think of anything that would disqualify it for Section 179.

Don't forget that the Basis is reduced by half of the business credit.

hgtcAuthor

Level 5

thanks.

Level 15

@hgtc Could you tell us where the Tesla Powerwall was installed and how it's used?

Based on the intention to elect for §179, the assumption is that it'd be used predominantly for business at over 50%.

When you say 30%, are you referring to the bonus rate for ITE under §48E by meeting the PWA requirements or 30% under §25D?

Could you please clarify as the application could be quite different?

---------------------------------------------------------------------------------Still an AllStar

hgtcAuthor

Level 5

Taxpayer installed solar panels for warehouse (100% use) in prior year and installed Tesla Powerwall in 2023.

Met PWA requirement, but, not qualified for bonus credit.

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