Is the money made on these things taxable income? Fed and state (MA)? If so, what do you treat them as? Capital gains? Other income? Business? I can see arguments for any of the above, but want to know if anyone has had any real experience with IRS or a lawyer on this. Even if I wanted to play it safe and just pay a tax (and I don't), I'd need to know how to tax it properly. Obviously if I guess wrong they'll still get mad and assess me penalties for trying to do the right thing. However, late penalties and interest can sure hurt my roof top PV break even point. Perhaps, though, since SRECs are an incentive, it's not taxable. Perhaps I'm dreaming. What do you reckon?