No. None of the project is deductible until you have the installation complete and the product is ready for use. So if this occurs in 2024, then you will be able to claim the credit, including the $1,000 down payment made in December, on your 2024 tax return.
The Residential Energy Credit is a non-refundable credit, however this one can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034
This credit is worth up to 30% of the cost of the equipment, with no maximum limit. The items that fall into this category are as follows:
- Geothermal Heat Pumps
- Small Wind Turbines
- Solar Energy Systems
- Fuel Cells
- Battery Storage Technology
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