Solar Credit?

Forum|Forum|2 years ago
February 17, 2024
2 replies
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I had solar panels installed by a company that charges me monthly for these panels. Can I use the total monthly payments for the year toward Solar credit?

DoninGA

Level 15

If installed in 2023 you enter the entire cost plus installation in the Home Energy Credit section of the TurboTax program. Your monthly payments are not reported for this credit. Only your original cost for the panels including the cost of installation.

Vanessa A

Level 15

No. You would use the total amount that you paid for the solar panels and installation on the contract. The interest is not deductible. Because you signed a contract for the payments it is the same as if you actually paid for the entire thing. You will get a 30% credit for the total purchase price. If you do not have enough of a tax liability this year to use the entire credit, you can carry the credit forward for additional years until the credit expires.

The Residential Energy Credit is also a non-refundable credit, however this one can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034

This credit is worth up to 30% of the cost of the equipment, with no maximum limit. The items that fall into this category are as follows: