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Deductions & credits
To explain it another way:
The solar tax credit is not a refund.
It is a credit against your federal income taxes due.
If you have a solar credit of $7,000 and your federal taxes due are $10,000, the credit would reduce your tax bill to $3,000.
If you have a solar credit of $7,000 and your federal taxes due are $5,000, the credit would reduce your tax bill to zero, and you'd have $2,000 of unused credit to use on your return the following year. You would not get a refund of the unused credit.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
‎January 14, 2020
2:53 PM