State tax filing

As noted elsewhere, it would be a good idea to create a new post when you have a new question, even if the question is related to the one at hand. This enables more people to see the question and improves the chances of getting a good response.

 

Also note that this is a public forum and that the moderators will remove (as they should) any personally identifiable information such as your full name, telephone number, Social Security number, email address, and so on.

 

As for your question, I see two reasons why the cost of removal and re-installation of the solar panels would not qualify for a tax credit.

 

"Original"

The US Tax Code at https://www.law.cornell.edu/uscode/text/26/25D states that the credit is taken in the year that the original installation takes place. The year when the installation takes place is determined by:

 

Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original[emphasis mine] installation of the item is completed.

(25D (e)(8)(1)).

 

Paragraph B which follows does not apply because it is referring to solar property that is an integral part of the structure, which solar panels are not.

 

"No Double-dipping"

If you allowed a tax credit on the original solar panel installation, it would not make sense allow tax credit a second time on the same panels. Otherwise, taxpayers would remove the panels every year and reinstall them, and claim the credit every year.

 

And, of course, there is no credit for the roof shingles in any case, for the reasons described earlier on this page.