Had solar panels installed on house $35300. Utility company required a replacement pole and new transformer $3791. Can utility be included in energy credit?

[PatriciaV · Accepted solution]

Yes, the Solar Energy Credit for 2017 includes installation costs like new power lines. Note that the credit is capped at 30% of the cost (with no upper limit). 

This credit is limited to your income tax liability, so if you don't owe any income taxes because your exemptions, standard or itemized deductions plus some other credits take your income tax liability to zero, you won't get a benefit from this credit. On a positive note, however, the solar panel credit carries forward and can be used to offset income tax liability in future years.

For more info, see: 

• EnergyStar - Federal Tax Credits - Solar Energy Systems
• IRS Residential Energy Efficient Property Credit (Section 25D) at a Glance