If I purchased a newly built home and solar (panel and battery) was included as a separate line item, can I claim that has part of the Home Energy Credit?

[le-stephen-p]

The sale of the solar setup was part of the overall cost of the home and was in closing costs.

[Vanessa A]

Yes.  If you are the original owner of the home, solar installed during construction is eligible to be claimed for the residential energy credit. 

The Residential Energy Credit is also a non-refundable credit, however this one can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034

This credit is worth up to 30% of the cost of the equipment, with no maximum limit.  The items that fall into this category are as follows:

• Geothermal Heat Pumps
• Small Wind Turbines
• Solar Energy Systems
• Fuel Cells
• Battery Storage Technology

To qualify

• The product must be installed on a home you live in, whether it is your first or second home
• You must have purchased the product new.  It cannot be used.

In order to claim the credit you must

• Live in the home you installed the item in
• You can not rent this home to others if you do not also live in the home
• it must be your main home
• It must be in the United States
• Can be claimed on newly constructed homes
• You cannot use the property solely for business. 
  • If you use the home partially for business but less than 20% you can take the full credit.
  • If you use the home more than 20% but less than 100% for business, you can take a prorated credit.

[le-stephen-p]

Vanessa,

I just reviewed the FAQs on the IRS website and it states that new construction is not eligible for these credits. Can you confirm that that is not correct and that I can file for the credits? What are your sources?

[Vanessa A · Accepted solution]

The credit is available for new construction for the Residential Energy Credit, but not the Home Efficiency Energy Credit.  Solar panels fall under the Residential Energy Credit. 

Can a taxpayer claim the credit for expenditures incurred for an existing home? What about a newly c...