I installed and paid for Solar & Batteries in 2022 and took the federal tax credit in 2022. I still have carryover credit for 2023. I received a SGIP rebate in 2023 from my utility which is not taxable but reduces my initial system cost. I thus need to reduce my carryover federal tax credit by 30% of the $2911.80 rebate I received.
IRS Form 4255 for ITC Solar Recapture does not seem to have instructions that apply to my situation.
I’m thinking of entering “SGIP Rebate Solar Recapture $2911.80 * 30%” on Schedule 2 Line 17Z (Other Taxes) and entering the amount of $874.00.
