I was able to enter the information for the installation of Solar Panels on my roof. But Turbo tax says I can't take the credit this year and have to wait until 2026. Is this right or not. I need the credit to pay the loan company or else my payment jumps up to a lot more money. Is this a mistake?
It depends on two main things: when your system was officially placed in service and whether you actually owe any taxes this year.
Under the One Big Beautiful Bill Act (OBBBA), your system must have been fully installed and operational, including permission to operate from the utility company, by December 31, 2025, to count for this year. If your final inspection didn't happen until January 2026, then the credit will be available in 2026.
The second factor is your tax liability. If you had deductions that brought your regular income tax liability down to $0, there is no tax for the solar credit to wipe out. Since it’s a non-refundable credit, it can only lower what you owe. Keep in mind self-employment taxes are not regular income tax, so the credit will not offset them.