JoannaB2
Expert Alumni

Deductions & credits

Yes, The residential energy credit (form 5695) allows you to deduct 26% (30% in 2019) of the cost of installing solar energy system from your federal taxes.  It is non-refundable and is used to lower your tax liability, If zero tax, credit will be carryforward to the next year/s.

 

The form may not be updated in Turbo Tax yet or not finalized by the IRS.