MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Be CAREFUL With Solar Tax Credits

24 Dec 2025 · 1 min

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In this brief commentary, Mark Kohler warns that while solar tax credits are beneficial for reducing utility costs, there are significant compliance and audit risks when these credits are sold to investors who are not materially participating in the project. He highlights problematic practices such as cross‑state transactions (e.g., a Florida investor buying a California solar tax credit) and solar‑leasing company structures that attempt to claim credits improperly. Kohler calls out promoters who devise “creative” ways to move credits, labeling these strategies as high‑risk and urging caution.

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Anything on solar that you're kind of keeping your eye on. There's actually a lot of concerns with that strategy. Fundamentally, the tax credit's wonderful. Solar is great. Let's help people mitigate disruption in their utility bills and reduce costs. But once you start trying to sell that solar tax credit to an investor that's not really materially participating in the project, and they cook up ways for it to happen, it is a huge audit risk. So I know that's dropping a bomb, but I've got to say it. I've had a lot of concerns about the solar tax credit credit for the investors and the promoters out there trying to sell it to someone that lives in Florida for a solar tax credit in California that they're really managing a solar leasing company. Give me a break. Anybody want to go toe to toe on that with me? Bring it.