AnnetteB6
Employee Tax Expert

Deductions & credits

No, it does not work that way.  You will not get a check from the government for 26% of the cost.  

 

The 26% of the cost of the installation ($6760 based on $26,000 cost) would be a tax credit on your return.  If you have a tax liability (you owe any income tax), then that credit would be used to reduce your tax liability, maybe to zero.  This means that your refund would increase by the amount of credit that was used on your return.  If there is any credit left over, then it can be used on a later tax return.  

 

To learn more, take a look at the following TurboTax article:  Federal Tax Credit for Residential Solar Energy

 

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