Sun Badger’s 2020 Promise
All of our customers who have signed solar array installation contracts any time during 2020, and who qualify for IRS tax credits, will either be eligible to receive the full 26 percent ITC directly from the federal government or, alternatively, the economic equivalent of the 26 percent ITC.
If the Tax Code is not amended to give taxpayers at least a 26 percent ITC for solar installations that “commence construction” in 2021 (under IRS timing rules), 2020 projects will remain eligible for a 26 percent ITC. But 2021 projects will only be eligible for a 22 percent ITC. Sun Badger wants to place 2020 and 2021 projects on an even playing field. So if your contract was signed with us before the end of 2020, and your project starts construction in 2021, thereby limiting you to a 22 percent ITC on your 2021 taxes, under qualifying circumstances, we will make up the 4 percent difference to you in the form of a cash rebate.
Claiming the Cash Rebate.
In the event solar array projects starting in 2021 are only eligible for a 22 percent tax credit, Sun Badger will establish procedures by which qualified customers may receive cash rebates.
This is how it will work: If your project commences in 2021 and you claim a tax credit for that project on your 2021 taxes, you or your tax advisor will need to file an IRS Form 3468 with your 2021 tax return, which is the form taxpayers use to claim potential eligibility for the ITC. If your IRS Form 3468 shows not only that you are eligible for a 22 percent tax credit in 2021, but also that you would have been entitled to a 26 percent tax credit if such a credit had been available, Sun Badger will pay you the dollar amount of the tax reduction you would have received if a 26 percent ITC had been in effect for 2021.
To receive any such cash rebate, Sun Badger will provide qualified customers with instructions regarding the paperwork they will need to submit to Sun Badger after preparing their 2021 tax return. Customers will be required, at a minimum, to provide a copy of their completed IRS Form 3468. Sun Badger will issue the cash rebate to all qualified customers within 30 days of receiving the required paperwork. Customers who do not qualify for the rebate will be informed, in writing, that their rebate claim has been denied including the reason(s) why they would not have qualified had the ITC been extended.
Sun Badger Does Not Provide Tax Advice.
Sun Badger is not qualified to and does not provide tax advice, of any kind, to any of its customers, under any circumstances, and nothing in this contract should be construed as Sun Badger providing tax advice. Sun Badger will not provide to you any assistance in completing and submitting an IRS Form 3468 to the IRS or any other tax documents.
In order to realize the benefit of the ITC, you must have federal income tax liability that is at least equal to the value of the tax credit. This guarantee only provides a cash rebate to customers to the extent those customers fail to realize some dollar amount of tax liability reduction that would have been available to the customer if the 26 percent ITC had been (but was not) available for a 2021 project. If you have any questions about this guarantee, please direct them to your Project Manager or Energy Consultant.