topic solar tax credit in Deductions & credits

solar tax credit

thomas smith — Thu, 09 Feb 2023 21:33:13 GMT

In November 2022 I began a solar energy installation. Panels have been installed but the system is not yet activated because the battery backup part of the system has not been installed. So far about $21K has been paid to the installers out of the loan amount on $35K. Can I claim the 30% tax credit on my 2022 taxes, and if so, how much of the cost of the total installation can I claim?

Re: solar tax credit

MayaD — Thu, 09 Feb 2023 21:48:54 GMT

You can't claim the credit on your 2022 return. The system must be placed in service and generating power. If you activate the system in 2023 you can claim the credit on your 2023 return.

Under the new law, the credit increased to 30% if you purchase the energy efficient equipment January 1, 2022 through December 31, 2032.

Edited[02/09/2023, 01:48 PM, PST]