I am looking to purchase a solar system for our house. I know that there is 30% non-refundable tax credit available for solar. My question is HOW MANY years can I carry forward the unused portion of the credit if my tax liability is not high enough to utilize it all in the first year.
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As you have probably read, this is an area that the IRS has
not yet ruled on.
If you spent $3,000 in 2016 on solar panels, but your tax liability was only
$2,000, then you could take only the $2,000 for 2016, and carry over the $1,000
to 2017.
But that is all the instructions
for form 5695 (2016) say.
I see an
industry report that the IRS has extended the credit to 2021, which raises
the hope that carryovers may run to 2021, but I cannot find an IRC reference
yet.
See the IRS Q&A for
more background.
If the industry report is true that the credit has been extended to 2021, then
the carryovers are likely extended as well.
As you have probably read, this is an area that the IRS has
not yet ruled on.
If you spent $3,000 in 2016 on solar panels, but your tax liability was only
$2,000, then you could take only the $2,000 for 2016, and carry over the $1,000
to 2017.
But that is all the instructions
for form 5695 (2016) say.
I see an
industry report that the IRS has extended the credit to 2021, which raises
the hope that carryovers may run to 2021, but I cannot find an IRC reference
yet.
See the IRS Q&A for
more background.
If the industry report is true that the credit has been extended to 2021, then
the carryovers are likely extended as well.
I am well am wondering if anyone yet has an answer to HOW MANY YEARS can I continue to roll my solar credit forward. Please lmk if anyone has figured this out. This is my 2nd year rolling some over, wondering if anyone knows if this will continue in the next year or two?
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