How much is the federal rebate for solar panels?

Forum|Forum|4 years ago
June 20, 2022
4 replies
43 views

i invested $49,000 into solar panel system for my home how much of that is eligible for a federal rebate?

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DoninGA

Level 15

IRS Form 5695, Residential Energy Credits (2021) - https://www.irs.gov/pub/irs-pdf/i5695.pdf

You may be able to take a credit of 26% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, biomass fuel property, and fuel cell property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home

DoninGA

Level 15

Also see - https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics#:~:text=In%20December%202020%2C%20Congress%20passed,2024%20unless%20Congress%20renews%20it.

SweetieJean

Alumni - Champ

It is not a rebate per se, but rather an income tax credit. This is a nonrefundable tax credit, which means you will not get a tax refund for the amount of the tax credit that exceeds your tax liability. However, you can carry over any unused amount of tax credit to the next tax year.

NCperson

Level 15

@debbierod338437 - look at line 22 of your 2021 tax return....the solar credit can be used to take that line to zero, but no further. Any solar credit left over can be carried foward to the following year.... make sense?