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Investors & landlords
@laraseantax - I agree with the 'yes', but there is a 'but'.
The solar credits are 'non-refundable credits'. What that means is the solar credit reduces the tax liability on Line 18 of Form 1040. That liabiltiy can not go below zero (see Line 22).
So as long as the solar credit is less than your tax liaiblity (line 18), then the response of 'yes' to your hypothetical numbers is correct.
BUT
if the solar credit is GREATER than your tax liability, you must carry over the remainder to a future year.
(Form 3468 also results in a non-refundable credit)
‎July 18, 2022
6:47 AM