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Deductions & credits
Yes, the solar credit you claimed in 2016 is separate from the Residential Energy Credit you are claiming from the installation of your tankless water heater.
The solar credit is not the factor that is limiting the credit on your 2021 return. Instead, the $150 limit is being applied because of the type of improvement you made in 2021.
Your solar credit does not apply toward the $500 lifetime limit on the Residential Energy Credit, but the $150 credit you are claiming for the tankless water heater does.
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‎February 16, 2022
6:16 AM