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Can I get the Residential Energy Efficiency Property Tax Credit on an investment property (not primary residence) where I installed solar panels? Or does it only apply to primary and secondary homes?
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Deductions & credits
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Deductions & credits
The home needs to be your residence. It can not be used for a rental property. The credit for solar panels is in Section 25D of the Tax Code:
However, a taxpayer may claim a § 25D credit for other qualifying properties described in § 25D that are not fuel cell properties (solar electric property, solar water heating property, sm
all wind energy property, and geothermal heat pump property) installed in or on a dwelling unit used as a second home or a vacation home by the taxpayer. But a taxpayer may not claim the § 25D credit for expenditures for improvements made to an investment property, such as rental property, that is not also used as a residence by the taxpayer.
https://www.irs.gov/pub/irs-drop/n-13-70.pdf
The term “qualified solar electric property expenditure” means an
expenditure for property which uses solar energy to generate electricity
for use in a dwelling unit located in the United States
and used as a
residence by the taxpayer
.
https://www.law.cornell.edu/uscode/text/26/25D#d