Carl
Level 15

Investors & landlords

First some clarification.

Tax credit: Lowers your tax liability dollar for dollar. So if your tax liability on line 11 of the 1040 is say, $1000 and you have a $300 tax credit, that changes your tax liability to $700.

Tax Deduction: Lowers the amount of your income that is taxes. So if you have $10,000 of income taxed at 10% that means your tax liability is $1000. Then ifyou have a 10% tax deduction that reduces the taxable income to $9,000 and your tax liability is $900.

To answer your question, no you can not take the 30% solar tax credit on the property because it's not your primary residence. Period. However, if certain conditions are met you may qualify for the investment credit (IRS Form 3468)  Instructions on page 4 at https://www.irs.gov/pub/irs-pdf/i3468.pdf