Ezel / IRS Rulings / 1032038
Chief Counsel Advice 1032038 Released August 13, 2010 Advice

CCA 1032038: Solar-energy equipment generally receives five-year MACRS treatment, with limits on pool-heating property

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This page covers one taxpayer's ruling from 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel Advice addresses the recovery period for solar-energy equipment and the status of bonus depreciation. It states that qualifying equipment using solar energy to generate electricity, heat or cool a structure, provide hot water, or provide solar process heat generally falls within the five-year MACRS classification, but equipment used to heat a swimming pool does not. It also notes that the 50-percent additional first-year depreciation deduction had expired for most property placed in service after 2009, while proposed legislation would have extended it if enacted.

Ruling snapshot

  • Question: How should qualifying solar-energy equipment be classified for depreciation, and had bonus depreciation been extended?
  • Outcome: Advice given
  • Key authorities: IRC §§ 48(a)(3)(A) and 168; section 2022 of the proposed Small Business Jobs Act of 2010.

Full text (IRS public release)

ID: CCA_2010070115383557 Number: 201032038
Release Date: 8/13/2010
Office: ------------
UILC: 168.20-00, 168.36-00

From: ------------------
Sent: Thursday, July 01, 2010 3:38:41 PM
To: ----------------------
Cc:
Subject: RE: Green Team Org-MACRS 50%

  1. The 5-year property classification under section 168 (MACRS) includes
    equipment using solar energy that meets the definition of "energy property" in section
    48(a)(3)(A). Generally, equipment that uses solar energy to (i) generate electricity, (ii)
    heat or cool a structure, (iii) provide hot water for use in a structure, or (iv) provide solar
    process heat, qualifies for the 5-year classification. But, this 5-year classification does
    not include property used to generate energy for the purposes of heating a
    swimming pool.

  2. The 50-percent additional first year depreciation deduction (bonus depreciation)
    expired for most property placed in service after 2009. However, yesterday [June 30,
    2010], several U.S. senators introduced the Small Business Jobs Act of 2010 and
    section 2022 of that Act would extend bonus depreciation for one more year. If this
    legislation is approved, this extension would apply to property placed in service after
    December 31, 2009, in taxable years beginning after that date. This legislation has not
    yet been approved by the Senate.

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