I'm Purchasing a new home that includes SOLAR. Will I be able to take the Solar tax credit on a new home, the builder will itemized the cost of the SOLAR?

[DoninGA]

You will be eligible for the Residential Energy Efficient Property Credit on the new home with the solar panels installed.

As stated in the instructions for Form 5695 Residential Energy Credits - https://www.irs.gov/pub/irs-pdf/i5695.pdf

Only the residential energy efficient property credit (Part I) is available for both existing homes and homes being constructed. The nonbusiness energy property credit (Part II) is only available for existing homes.

[TomD8]

Yes, assuming the builder himself did not claim the credit.

[Opus 17]

No, you can't claim the credit if the builder installs the system and pays for it, even if you "reimburse" the builder or get an itemized bill of sale.

If the builder installs the system, the builder is eligible for a different credit (that is only available to builders and not homeowners). 

If you make a contract with the solar installer and you pay the solar installer, then you can claim the credit, even though the home is under construction, and not technically owned by you at the time of the installation. 

[TomD8]

@Opus 17 wrote:  "No, you can't claim the credit if the builder installs the system and pays for it"

Not according to the U.S. Dept. of Energy.  See this Q&A from their brochure on the solar credit:

Q: I bought a new house that was constructed in 2020 but I did not move in until 2021. May I claim a
tax credit if it came with solar PV already installed?
A: Yes. Generally, you can claim a tax credit on the expenses related to the new solar PV system that already came installed on the house for the year in which you moved into the house (assuming the builder did not claim the tax credit)—in other words, you may claim the credit in 2021. For example, you can ask the builder to make a reasonable allocation for these costs for purposes of calculating your tax credit.
https://www.energy.gov/sites/default/files/2021/02/f82/Guide%20to%20Federal%20Tax%20Credit%20for%20R...

[Opus 17]

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@TomD8 wrote:

@Opus 17 wrote:  "No, you can't claim the credit if the builder installs the system and pays for it"

Not according to the U.S. Dept. of Energy.  See this Q&A from their brochure on the solar credit:

Q: I bought a new house that was constructed in 2020 but I did not move in until 2021. May I claim a
tax credit if it came with solar PV already installed?
A: Yes. Generally, you can claim a tax credit on the expenses related to the new solar PV system that already came installed on the house for the year in which you moved into the house (assuming the builder did not claim the tax credit)—in other words, you may claim the credit in 2021. For example, you can ask the builder to make a reasonable allocation for these costs for purposes of calculating your tax credit.
https://www.energy.gov/sites/default/files/2021/02/f82/Guide%20to%20Federal%20Tax%20Credit%20for%20R...

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That seems like a stretch from the language of the actual law, which says the "taxpayer" must have the expenditure.  I don't know what would happen if the tax court and the Dept of Energy disagreed.  I would rather find confirmation from the IRS.    Maybe the implementing regulation clarifies the position of who is making the "expenditure."

[TomD8]

I would think the taxpayer is quite safe relying on an official U.S. government publication titled Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics, which is the source I quoted, as well as the Form 5695 instruction quoted by @DoninGA .

[Rick19744]

I believe the taxpayer would be safe to rely on the above based on the Statute.

IRC Section 25D(e)(8)(B) states "in the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins."

As noted above, as long as the builder has not claimed the credit, the purchaser of the home should qualify as the buyer is the "taxpayer" that starts the original use requirement.