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Level 1
posted Aug 31, 2022 9:15:24 AM

Solar Credits Again?

I installed Solar and took the federal tax credit back in 2020, can I take it again if I upgrade my system by adding more panels and hardware to support that this year or next??

1 3 887
1 Best answer
Employee Tax Expert
Aug 31, 2022 12:10:00 PM

Hi Tim 144, 

 

We are cash basis taxpayers, we report income and deductions in the year that we actually receive it or pay. In 2020, you were able to claim the credit for the expense of installing the solar panels. Now, if you made improvements in 2022 by adding more panels and hardware, you may claim the credit on your 2022 tax return.

 

Additionally, qualifying solar panels include: solar roofing tiles and shingles that serve both as traditional roofing and solar electric collectors qualify for the credit. Structural components such as a roof’s decking or rafters that serve only a roofing or structural function do not qualify for the credit.

 

Hope this helps you, please let us know if you have any further questions. 

3 Replies
Employee Tax Expert
Aug 31, 2022 12:10:00 PM

Hi Tim 144, 

 

We are cash basis taxpayers, we report income and deductions in the year that we actually receive it or pay. In 2020, you were able to claim the credit for the expense of installing the solar panels. Now, if you made improvements in 2022 by adding more panels and hardware, you may claim the credit on your 2022 tax return.

 

Additionally, qualifying solar panels include: solar roofing tiles and shingles that serve both as traditional roofing and solar electric collectors qualify for the credit. Structural components such as a roof’s decking or rafters that serve only a roofing or structural function do not qualify for the credit.

 

Hope this helps you, please let us know if you have any further questions. 

Level 1
Aug 31, 2022 12:48:07 PM

Thank you @Laura_CPA!!  I was half expecting there was a limit of use like you can only do it 1 time.  Thank you for the information.

Employee Tax Expert
Aug 31, 2022 3:53:33 PM

You're welcome, Tim 144! Have a wonderful day 🙂