Can I continue to deduct my solar tax credit after the sale of my home?

[chance108]

We installed solar in Jan 2023, but it likely will be something with have to roll the deduction over 2-3 years. We are considering sell our house though, so if we do that, can we continue the deduction?

We have a loan for the solar that is supposed to be able to be transferred to the next owner, so if we were paying it off in full then I’d assume I could, but since the new owner would be assuming the loan, I’m not sure if that makes a difference?

[Opus 17 · Accepted solution]

If the system was installed in 2023, you must claim it on your 2023 tax return.  If there is an unused balance because the credit exceeds your tax liability , it will carry forward to 2024 and so on until used up.  The fact that you might sell the home before the credit is used up does not affect your ability to use the carry forward credit.  The fact that you financed the system also does not affect the credit carry forward (the need to assume the loan may affect the selling price of the home, but it does not affect the credit.)