Solar Installation during Construction

aroy0911 — Fri, 22 May 2020 15:52:35 GMT

I just want to make sure that I enter the information correctly, so that I receive the solar credit. Does how I answer the question "were any of these improvements related to the construction of this main home" affect the amount of the credit. My solar panels were put on during construction of the home before we moved in. However the solar panel installation had nothing to do with the construction of the home, so I was thinking it is not related. Should I answer yes or no to this question. Right now I have answered no.

Re: Solar Installation during Construction

VictoriaD75 — Fri, 22 May 2020 16:06:11 GMT

It is asking you this question, because in some instances, you only qualify for the credit if installed in your principal residence.

According to the U.S. Department of Energy, you can claim the Residential Energy Efficiency Property Credit for solar, wind, and geothermal equipment in both your principal residence and a second home. But fuel-cell equipment qualifies only if installed in your principal residence.

The credit is equal to 30% of the cost, including installation.
There is no upper limit on the amount of the credit for solar, wind and geothermal equipment.
The maximum tax credit for fuel cells is $500 for each half-kilowatt of power capacity, or $1,000 for each kilowatt.
- For example, a fuel cell with a 5 kW capacity would qualify for 5 x $1,000 = $5,000 tax credit.

To add the information to your return, under the Federal menu on the left, choose Deductions & Credits. Expand the menu for Your Home. Click Start/Revisit next to Home Energy Credits. Answer Yes on the following screen and click Continue. Enter the information on the screens that follow.

Energy Tax Credit

topic Solar Installation during Construction in Deductions & credits

Solar Installation during Construction

Re: Solar Installation during Construction