Solar Tax Credit

A Solar Energy Tax credit is a nonrefundable credit. Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.)

 

Form 5695 (Residential Energy Credits) is used to calculate tax credits for energy efficient improvements and alternative energy equipment.

 

To add or remove this form:

1. Open or continue your return
2. Inside TurboTax, search for this exact phrase including the comma and spaces: 5695, residential energy credit
3. Select the Jump to link in your search results
4. At the bottom of the Energy-Saving Home Improvements screen, answer Yes, then select Continue
5. Follow the instructions to enter your energy-saving improvement costs

 

Or Federal tab > Deductions & Credits .> Your Home > Home Energy Credits, then Start > On the Energy-Saving Home Improvements screen, answer Yes and Continue. Follow the instructions on the next screens.

• The first part of the interview covers improvements like doors, windows, furnace, air conditioning, and heat pumps. If you're looking for other improvements like solar, geothermal, wind, and fuel cell, just keep going—we'll ask you about these soon.
   

TurboTax FAQ: How do I edit or remove Form 5695?