Can I take solar tax credit if install happened in 2020 and 2021?

[frostily0495]

Solar install on my single family home (primary residence) started in 2020 part of which was done in 2020 and I made partial payment in 2020. The install was completed in 2021 and I paid the remaining balance in 2021. 

Can I file for solar tax credit while filing for 2020 tax or do I need to file it in 2021? Given the solar tax credit of 26% has been extended to 2021 does it matter in which year I take the credit?

[JotikaT2]

You are eligible to take the credit in the year the installation occurs. 

Since you did not complete the installation in 2020, you would be able to take the credit in 2021 when the system was fully installed. 

Per the link below, you can take a credit for 26% of the cost for 2021 (same rate as applicable in 2020 as noted in your question.)

Residential energy credit for solar panels

[frostily0495]

Thanks. 

Does it matter that some of the payment was made in 2020 and others in 2021. 

Let says I made $100 payment in 2020 and $900 in 2021 for install. Can I claim whole $1000 in 2021 tax filing? 

[JotikaT2]

Yes, you can only claim it when the actual installation is complete. Therefore, you will use the entire $1,000 as the cost when you prepare your 2021 tax return.