Solar commercialization is the legal process of restructuring your solar system as a for-profit business (typically an LLC) rather than a personal residential asset. This allows you to access commercial tax benefits—including the Section 48E investment tax credit (up to 30% or more), MACRS accelerated depreciation, and business expense deductions, rather than just the standard residential tax credit.

It's completely different. We don't advise claiming depreciation while keeping the residential credit. We help you properly convert to commercial treatment and claim the commercial Section 48E credit instead.

The 30% Investment Tax Credit (Section 48/48E), 5-year accelerated depreciation (MACRS), and business expense deductions (Section 162). Plus potential 10% bonus adders for domestic content or energy community locations. Combined, these can return 50-70% Sometimes more of your system cost depending on customer tax bracket.

Yes, when structured correctly. Our approach is backed by a comprehensive legal opinion from Nelson Mullins Riley & Scarborough LLP, one of the nation's leading law firms with over 125 years of regulatory and business law expertise. They would defend this strategy in court.

Anyone installing solar who has tax liability to offset and demonstrates genuine business intent (such as selling power to the utility or offsetting consumption costs) can potentially benefit. It's particularly valuable for

those with significant taxable income.

The primary theoretical risk is the IRS challenging the activity as a hobby under Section 183, but audit odds are extremely low (less than 1% overall, and far lower for this specific activity), and our documentation is designed to survive scrutiny. Proper structure and documentation, which Midas and Paramount provide,

substantially mitigate this risk.

Midas offers a Full Transfer product specifically for this situation. We structure a partnership LLC where you retain ownership (Class A units) and Midas takes (Class B units), holding all the equity in the tax transfer. We then sell the tax credits and depreciation to investors through our established buyer relationships and

provide you with a cash payment, typically 25% of your system cost.

There is far more demand for tax credits than supply. Fortune 500 companies have roughly $400 billion in annual tax liability, while total available tax credits are estimated at $40-50 billion. Midas holds all equity in tax equity transfers and maintains direct relationships with tax equity buyers. We work with experienced capital markets professionals who broker tax equity investments to institutional buyers. The credits we offer are priced competitively, making them highly attractive to investors.

The income comes from two sources: (1) electricity sold back to the utility through net metering arrangements, and (2) the economic value of electricity consumed by the home, which reduces utility bills. Both represent taxable barter income under well-established tax law, just like a farmer who either sells or

consumes their own crops. If a farmer eats their own cow instead of selling it, that's still income. When your home uses electricity you generated instead of paying the utility, you've increased your net worth, that's income and demonstrates a clear profit motive.

Our structure follows the Nelson Mullins legal opinion, which is designed for real business operations with genuine profit motive. The LLC is structured with proper documentation, separate bank accounts, ongoing

management activities, and arm's-length transactions. If needed for additional protection, Form 8275 disclosure can be filed with the return. The focus is on establishing and documenting reasonable basis for all positions taken.

No. Solar energy generation does not have the characteristics of a hobby. There's no personal pleasure element (unlike a horse farm or yacht), clear profit motive exists (reduced bills = increased net worth), and the activity is conducted in a businesslike manner with proper documentation.

Our exclusive tax partner, Paramount Tax and Accounting, handles all tax reporting. Depending on your structure, this typically involves Schedule C (for single-member LLCs) or Form 1065 (for partnerships), plus Form 3468 for the Investment Tax Credit.

Midas provides all the legal documentation: LLC formation papers, Operating Agreement, Contribution Agreement, and related transaction documents. You'll also need to maintain energy production records, utility statements, and invoices which Paramount Tax and Accounting uses for tax reporting. For bonus

credits like domestic content, supplier certifications may be required, which Midas helps coordinate.

Unused credits can be carried forward for up to 20 years. If you have more credits than you can use, the Full Transfer option allows Midas to sell the tax benefits to investors on your behalf. Paramount Tax and Accounting can help plan for changing circumstances and optimize credit utilization across multiple tax years.

Yes, state incentives like rebates and additional credits vary by location. Midas operates across multiple states and ensures compliance with state-specific requirements. Paramount Tax and Accounting handles state tax filing requirements. The federal commercialization framework is consistent nationwide, but state benefits can add significant additional value depending on where you live.

Ask them specifically what concern they have. Often, CPAs initially assume we're doing something we're not (like claiming depreciation on a residential system while keeping the 25D credit). Once the actual approach is explained, most concerns are resolved.

Absolutely. We encourage you to consult with your own tax professional. We're happy to provide them with information about our approach. Every taxpayer's situation is unique, and your CPA knows your complete financial picture. They're welcome to coordinate with Paramount Tax and Accounting if they have technical questions about the tax implementation.

Midas provides turnkey LLC formation with proper legal structure, comprehensive documentation backed by Nelson Mullins legal analysis, and coordination with Paramount Tax and Accounting for compliant tax filing. For Full Transfer clients, Midas holds all equity and manages investor relationships, taking on transaction risk. Our Fund II structure offers multiple investment packages designed to monetize credits safely while protecting all parties.

Not necessarily. The solar system is owned by the LLC, not by you personally. Just like mineral rights can be separated from surface rights, your LLC can continue to own the solar system even if you sell the underlying property. Recapture is triggered by disposing of the asset, and selling your house doesn't automatically mean selling the solar system.

Yes. Amended returns can be filed within three tax seasons to properly restructure your tax treatment. The IRS doesn't object to taxpayers reporting additional business income, in fact, our commercialization approach results in reported gross income that would not otherwise appear on the return. Paramount Tax and Accounting handles the amended return preparation, and Midas establishes the proper business structure going forward.

The domestic content bonus adds 10% to your ITC for using U.S.-manufactured components meeting threshold requirements (45% in 2025, rising to 55% later). Safe harbor certifications are available to verify compliance. Energy community bonuses (another 10%) apply to approximately 30% of installations based on location. Midas helps identify which bonuses you may qualify for, and Paramount Tax and Accounting ensures proper certification and claiming.

Approximately 30% of clients qualify for energy community bonuses based on their location. Domestic content qualification is less common currently due to supply chain realities, but this is improving as more U.S. manufacturing comes online, particularly with newer products from manufacturers like Tesla. Virtually all

clients who proceed complete the LLC formation successfully; only a small percentage decline or are unable to proceed for other reasons.

Setup fees typically range from $3-4,000 depending on the complexity of your situation. The value proposition is significant, clients typically receive tax benefits worth many multiples of the setup cost. Even clients who only qualify for the base 30% ITC (without bonuses or depreciation) generally find the

offset value exceeds the cost. Refund rates for disqualification (such as inability to form an LLC) are low, and we can often shift to alternative structures.