Level 3

Leased HVAC and Solar Panels

Forum|Forum|1 year ago
February 12, 2025
3 replies
10 views

My understanding is that the energy credit for leased solar panels goes to the leasing company and the customer is not eligible for the tax credit on their 1040. I have a tax client that is leasing a new furnace. Does the HVAC company also get the energy credit for furnace lease. The lease is a lease to own after 25 years of leasing.

sjrcpa

Level 15

Never heard of leasing a furnace.

What happens at the end of the lease? Does the company remove it?

The more I know the more I don’t know.

W

wallacedkAuthor

Level 3

HVAC companies in my area are now doing it. It is a 25 year lease to own, with the lease payments also covering maintenance. After 25 years of lease payments the homeowner owns the furnace.

T

TaxGuyBill

Level 15

I'm with Susan; I've never heard of leasing a furnace. It seems weird.

At any rate, I don't think anybody gets the credit. The "original use" is the HVAC company leasing it to the taxpayer, so I don't see how the taxpayer can get a credit. The HVAC company doesn't use the home as a Residence, so they don't get a credit either.

IRonMaN

Level 15

Sounds like the old comedy skit - $99 down, $99 a month, for 99 years.

Slava Ukraini!

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