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I'm applying for Solar Tax credit but the project payment has been split into 2023 and 2024 how do I claim for tax credit ?

Only 10% of the total cost was paid in 2023 and the rest was paid in Feb 2024
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2 Replies
AnnetteB6
Expert Alumni

I'm applying for Solar Tax credit but the project payment has been split into 2023 and 2024 how do I claim for tax credit ?

You would claim the credit based on when the installation was completed.  If the installation was complete in 2023, then claim the total cost on your 2023 tax return even though the total amount had not yet been paid.  

 

According to the IRS Instructions for Form 5695, 'costs are treated as being paid when the original installation of the item is completed'.

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I'm applying for Solar Tax credit but the project payment has been split into 2023 and 2024 how do I claim for tax credit ?

the installation was complete in 2024, so I will have to wait till next year to claim .. thank you for the quick response 

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