Deductions & credits

Yes, Solar Renewable Energy Credits are taxable, on both your federal and state returns.

The sales are typically reported on Form 1099-MISC.  The form is generally issued to income recipients if at least $600 in income has been received.

However, the income must be reported, even if you don't receive the 1099-MISC.

Following Irene2805's advice from this page, you'll enter this income using the following steps:

  1. Click on Federal > Wages & Income   
  2. In the Less Common Income section, click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-C
  3. On the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income. 
  4. On the Any Other Taxable Income? screen, click the Yes box.
  5. Enter the income on the Other Taxable Income screen, along with a description.  Click Continue.
  6. You will be brought to the Other Miscellaneous Income Summary.  If you have no more miscellaneous income to report, click Done.

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