I understand there is a Solar Energy credit for purchase of Solar equipment. Does taxpayer get a Solar CREDIT if he leases the solar equipment?

[bwa · Accepted solution]

You are eligible for the Federal credit as long as you own your solar energy system, rather than lease it. If you sign a lease agreement, the third-party owner gets the solar tax credit associated with the system.

[sjball605]

There is no Federal tax credit for leased solar systems. However, some States/Counties give a one time tax credit for leased solar systems. As not all States/counties give this credit, your best bet is to check directly with your county tax office.

The State/county I live in requires you to complete and submit a tax credit request form to their finance office. If approved they will send you back the tax credit information you need to file.

There is a section on your state taxes to add State or local tax refunds/credits.

[PrinceA]

Typically that credit is allowed to get filled once the Residential area has completed their Energy Efficient Improvement. For more information please click this IRS link that goes into depth.

https://www.irs.gov/pub/irs-pdf/i5695.pdf