Solved: Great, this makes me feel more comfortable should I go th...

dmertz · ‎June 3, 2019

TurboTax implements the Form 5695 line 14 Residential Energy Efficient Property Credit Limit Worksheet to calculate the amount of tax liability that remains after reducing the tax liability by the amount from Form 8936 line 23, among other credits. <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i5695.pdf">https://www.irs.gov/pub/irs-pdf/i5695.pdf</a>

jmknyc1 · ‎June 3, 2019

Thank you all for this discussion. I was hoping for some clarification since the initial view changed somewhat. If you have installed solar and bought an electric car in the same year the IRS will calculate separately, but will apply the solar portion first, then the electric vehicle credit second? Thank you.

hbvalse · ‎June 3, 2019

I ran this scenario through TT Home and Business for 2017, testing with both solar and electric car credit to allow for a credit carryforward. What happened is the solar credit was used first, then balance from the electric car credit. Zero credit carryforward to 2018. 2018 TTO is still too preliminary on 12/17 to be sure how it will calc if taken in 2018.

jmknyc1 · ‎June 3, 2019

Thank for spending the time to look into this issue. It looks like this is a true grey area, meaning that to be safe I wouldn’t be able to purchase an electric car unless I have sufficient tax liability for both. Truly, much appreciated.

hbvalse · ‎June 3, 2019

Correction to above. I continued to test 2017 TT Home and Business for this issue and found an error in my input yesterday. When input correctly, the EV credit shows on 1040 line 54c, the EV credit does get used first, and the balance of the solar credit is carried forward. Hope that helps.

jmknyc1 · ‎June 3, 2019

Great, this makes me feel more comfortable should I go through with the purchase, which is now a possibility. Thanks again.

bemindfull · ‎July 28, 2021

@jmknyc1 If you see this, were able to get the EV credit to apply first?

We bought an EV this year and would like to install solar, but I want to be sure the solar credit is applied second and can carry over.

Thanks!

riddles · ‎May 25, 2022

@joemorales87 are you able to expand on this further now that it has been a few years? What route did you take and how did you end up filing your taxes? I am in the same situation now where I have an electric vehicle coming next month and would like to install solar on my new home before the credit goes down next year.

NCperson · ‎May 25, 2022

@riddles - if it helps any, both the solar and EV tax credits are what is called 'non-refundable' credits. What that means is Line 22 of your tax return can't be less than zero. So whatever your tax is (line 16) less these credits, and less any other credits that appear on Lines 17-21 can't cause Line 22 to be less than zero.

other credits that get posted beyond Line 22 are 'refundable credits', meaning you get the cash from the IRS, even if you don't have a tax liaiblity (Line 22 = 0).

riddles · ‎May 25, 2022

@NCperson I understand that part. The problem I am running into is I know that the EV credit can only be used once, but the solar can be used over 5 years. I am worried that I will have to use the solar credit first. Or can I choose to not claim the credit that year and use it the next year?

JcLeiva · ‎July 7, 2022

Is there anyway to get clarification on this? The discussion seems to be mixed. Let’s say my tax liability is $7,500. I purchased a new qualifying EV and solar panels. Will I be able to claim the $7,500 EV tax credit first and roll over the solar tax credit? Since the EV tax credit doesn’t roll over like the solar tax credit does, I want to make sure this is clear so that someone else understands how to proceed.

NCperson · ‎July 8, 2022

@JcLeiva your description is the way it works. Since the EV credit is 'use it or lose it" while the solar credit can be carried over into furture years the EV credit gets consumed first. If you work your way through the forms for EV and Solar credits, you will see this will be the result.

And 'tax liability' is Line 18 of Form 1040 - it has nothing to do with refund or amount due

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I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

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I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

I understand how the tax credit for solar energy works and how the electric vehicles works but if I have both in the same tax year, how do they calculate it?

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