Solar Tax Credit Trap Why Homeowners Get Stuck With the Bill

Episode Summary

On this episode of Utah Business Spotlight, host Peter Anthony sits down with Cody Osterhout, founder of Midas Wealth, to break down the solar tax credit trap that has left thousands of Utah homeowners stuck with bills they thought would shrink. Cody Osterhout has spent the last seven years inside the solar industry and built Midas Wealth around the gap most homeowners never see — the moment the white-glove sales experience ends and the loan, the balloon payment, and the unrealized tax credit all show up at once.

Cody Osterhout walks Peter Anthony through the math nobody explained at the kitchen table. Most solar loans carry a balloon payment that re-amortizes around 18 months in — assuming the homeowner dropped the full 30% federal tax credit back into the principal. The problem is the credit only works if the homeowner has the tax liability to absorb it. Cody Osterhout estimates more than 99% of residential solar buyers do not. The piggy bank exists, but the speed at which they can withdraw it is so slow that a $30,000 credit can take 30 years to actually realize.

The strongest content in the episode is the Midas Wealth structure itself — a tax equity transfer, more commonly known as a partner flip. Cody Osterhout partners with the homeowner, sets up a small commercial energy LLC around their solar system at no cost to them, transfers the tax credits and the depreciation up to a high-liability commercial taxpayer, and pays the homeowner roughly 25% of the system cost in cash the following tax year. The homeowner files a K-1 for five years. Midas Wealth handles the rest. The result is a cash check the homeowner never would have received on their own — even before the One Big Beautiful Bill eliminated the residential 25D credit.

Cody Osterhout and Peter Anthony go beyond the mechanics into the philosophy. Cody Osterhout believes in ownership over PPAs and leases — energy independence is impossible when a third party keeps the asset. Cody Osterhout's military background built the operating discipline behind Midas Wealth — never quit, fail faster, keep walking toward the end point. Peter Anthony reframes the entrepreneurial pursuit — the why is in the work, not in the pursuit, and a job is an investor in your dream if you treat it that way.

The episode closes with a clear directive — if you have solar, know someone with solar, or are sitting on a system that has not even been turned on, Midas Wealth is the call. Visit midaswealth.com or use the partner-with-us page. Utah Business Spotlight is produced by INCubator Marketing Agency and filmed in Sandy, Utah.

Key Moments

00:00 A Big Promise Meets Fine Print · 00:50 What Midas Wealth Actually Solves · 01:28 Where Solar Deals Start Breaking Down · 02:40 The Balloon Payment Homeowners Forget · 03:17 Why the Tax Credit Does Not Work for Everyone · 04:05 When a Good Incentive Turns Predatory · 04:34 The IRS and CPA Knowledge Gap · 05:41 Why Most Homeowners Never Realize the Credit · 07:12 Energy Independence vs Real Liability · 09:00 The Midas Wealth Commercial Structure · 11:03 How Homeowners Recover Cash Value · 14:19 Turning Tax Credits Into a Scalable Asset

Notable Quotes

"If you don't pay taxes, you're not going to get a tax credit." — Cody Osterhout

"I'm going to give you 25% of your system cost in cash for something you couldn't use in the first place." — Cody Osterhout

"More than 99% of homeowners going solar can't actually realize the credit." — Cody Osterhout

"Don't stop walking. If you keep walking forward, you will end at the point. It's just a matter of time." — Cody Osterhout

Frequently Asked Questions

Who is Cody Osterhout?

Cody Osterhout is the founder and CEO of Midas Wealth, a Utah company that specializes in solar tax credit transfers and partner-flip tax equity structures for residential solar homeowners. Cody Osterhout has spent seven years inside the solar industry, has been a CEO for approximately eight years, and is a military veteran whose discipline shapes the Midas Wealth operating model.

What is Midas Wealth?

Midas Wealth is Cody Osterhout's Utah-based company that helps residential solar homeowners recover the cash value of federal solar tax credits they cannot use on their own. Midas Wealth sets up a commercial energy LLC around the homeowner's solar system, transfers the tax credit and depreciation to a high-liability commercial taxpayer, and pays the homeowner cash the following tax year. Visit midaswealth.com.

Why does the solar tax credit not work for most homeowners?

Cody Osterhout explains that the federal solar tax credit only pays out as fast as the homeowner has tax liability to absorb it. A $30,000 credit owed to a homeowner who only pays $1,000 a year in federal income tax can take 30 years to fully realize. Cody Osterhout estimates more than 99% of residential solar buyers never fully realize the credit on their own.

What is a solar loan balloon payment?

Most residential solar loans assume the homeowner will receive their full 30% federal tax credit and apply it back to the loan principal within roughly 18 months. If the homeowner does not — which Cody Osterhout says happens to the vast majority of borrowers — the loan re-amortizes and the monthly payment effectively doubles. Midas Wealth was built to interrupt that cycle.

How does the Midas Wealth tax equity transfer work?

Cody Osterhout uses a structure called a tax equity transfer, also known as a partner flip. Midas Wealth partners with the homeowner, forms a commercial energy LLC around the solar system at no cost to the homeowner, and transfers both the tax credit and five years of depreciation up to a high-liability commercial taxpayer. The homeowner receives roughly 25% of system cost in cash the next tax year and files a K-1 for five years.

What happens if a homeowner sells their house?

Cody Osterhout addresses this directly. The system and the home are treated as two separate things. If the home sells, Midas Wealth can either bring the new homeowner into the LLC or keep the existing homeowner as the LLC member regardless of where they live. The homeowner's only ongoing requirement is filing a K-1 for the remainder of the five-year window.

Where is Utah Business Spotlight filmed?

Utah Business Spotlight is filmed at Sandy, UT (venue TBD). The show is produced by INCubator Marketing Agency and hosted by Peter Anthony.

About INCubator Marketing Agency

INCubator Marketing Agency is Utah's first AI-integrated marketing infrastructure team, headquartered in Sandy, Utah and serving small businesses, founders, and operators across Utah County, Salt Lake County, and the wider Wasatch Front.

Every engagement is built around the INCubator Method: seven core marketing systems — authority web design, local SEO, CRM and pipeline, marketing automation, AI voice receptionists, video content, and conversion-focused funnels — installed together as one accountable infrastructure so every dollar compounds month over month.

The agency was founded by Peter Anthony Wynn (Founder & Marketing Strategist) with Marc Olsen (Partner & Automation Expert) and Chelsie Wynn. INCubator operates Utah Business Spotlight, a long-form Utah small business podcast filmed at Bad Bet Productions in Sandy, Utah, and hosts Tuesday Night at the INCubator — a weekly marketing training and networking event for Utah business owners.

Contact: team@incubatormarketingagency.com · +1 385-386-6988 · Office hours Monday through Friday, 9 AM to 5 PM Mountain Time.