We are looking into buying a short sale home that very recently had solar installed (late last year). The solar lien is outstanding and the lien holder will not release the lien against the house without the debt being satisfied. We would potentially be paying down a portion of that lien in a separate transaction for it to be released and to secure the house. My question is: would we be able to claim the solar tax credit on that portion we are paying against the existing lien? For all intents and purposes we are paying that money for the solar system.
I know it's a rare scenario since those who install solar don't often immediately turn around and sell their home. I have not found a lot of info online.
