I was told that American Made solar panels get an extra 10% tax credit. If this is true, how do you reflect that on the forms?

[SabrinaD2]

Yes, American-made solar panels may qualify for an extra 10% credit under the Inflation Reduction Act if they meet domestic content requirements. You can claim this bonus on Form 5695 by including it in the total credit and attaching the necessary documentation if needed.

To add this form in TurboTax, follow these steps:

1. Log in to TurboTax and continue your return - be sure you are logged in for the link to work.
2. Navigate to the residential energy credit section by clicking this link: residential energy credit.
3. Continue through and complete the form for Form 5695 to be added.

Additional resources can be found by clicking What are Energy Tax Credits.

[scottj_1230]

Sabrina,

Thank you for the reply. I have completed form 5695, but I do not see any line item that asks about the manufacturer to indicate American made products and apply an additional 10%. What is the line item on that form to do so?

Thank you

[AmyC]

Things are different for a business vs an individual. 

Individual: An additional bonus is not available. Instructions for Form 5695 and Federal Tax Credits for Energy Efficiency

Tax credits for solar panels made in the U.S. 

• Production Tax Credit (PTC)
• Investment Tax Credit (ITC): A 30% credit for solar panels 
• Domestic content bonus credit: An extra 10% credit for solar panels that use American-made cells