In addition to your bombardment of solar installation calls you have probably been seeing a lot of marketing from the Hero program which allows you to make certain improvements to your house and add the cost of the improvements to your property tax payments to be paid off in a defined number of years.
I’m here to clear up some facts. The Hero program is offered by a private company known as Renovate America Inc. under the federal energy program known as Pace. The cost of the improvements can be added to your property tax bill. The Hero program is a financing program that supposedly is easier to use than having to get a Heloc to finance the improvements. The Hero program charges origination fees as well as interest. The interest portion of the payments is deductible. You will need to provide an amortization schedule to determine the portion of your repayment that is the interest.
The cost of the improvement is not deductible even though the cost is added to your property tax bill. The Hero “specialist” at their hotline phone number may tell you that the entire payment is deductible but they are wrong. I have researched the issue extensively and the IRS definition of deductible property taxes does not include repairs and improvements to your own home.
If this issue arises and you need further clarification then don’t hesitate to call us at (760) 471-2040