Hi, Paulorco,
Yes, you will get your tax liability reduced (and likely get a refund up to your taxes paid in) by the amount of the solar tax credit IF your tax liability is bigger than the solar tax credit. However, if your tax liability is smaller than the solar credits, you can only reduce your tax liability to zero in the current year.
Said differently, the Residential Clean Energy Credit is non-refundable meaning that it can offset your income tax liability dollar-for-dollar, but any excess credit won’t be refunded. You can carry that unused credit forward, though, and that will help you in future years.
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Karen
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