State tax filing

Yes. As noted at this IRS webpage, the amount of credit available for installing a PV system is 26% is installed during tax year 2020. See https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-question... 

 

Note the following caveats:

 

1. Only updates to your roof that were REQUIRED in order to install the solar panels for example, structural reinforcement) can be included in the cost calculation against which the 26% credit is determined. Don't believe solar panel vendors who tell you that you can reroof your entire home and apply it to the credit.

 

2. The credit is not-refundable. That is, it can be applied only to tax assessed on your income. For example, if your return shows that you owe $5,000 in tax (before applying withholding and estimated tax payments) but your credit is $6,000, then you can apply $5,000 of the credit to the 2020 tax return and carry over the unused $1,000 to 2021. You can continue to carry over if need be to 2022, however, it is not clear if Congress will renew the carry over after that. So taking this credit requires some tax planning on your part to make sure that you can effectively utilize it.