If I sell my home now (I have owned it 1 year and ~7 months) will I have a captial gains tax to pay on the profit and could my solar credit cancel that out?

[NCperson]

unless you had a 'good reason' (e.g. move for another job in another town), you are subject to LONG TERM capital gains tax on your profit because you did not live and own the home for 24 months.  

the solar credit can reduce your tax liability, but it's really hard to say without knowning the full estimate of your income situation.  

you might want to do an estimate of your 2022 tax situation.  For the home sale:

(selling price of the home - selling expenses*) minus (purchase price of the home + improvements) = gain

* the big one is the sales commission

[Critter-3]

Actually in the program .... the selling expenses are added to the cost basis ... and don't forget the costs to buy in the calculations ...

(selling price of the home - selling expenses*) minus (purchase price of the home + improvements) = gain

selling price of the home  minus (purchase price of the home + costs to BUY  + improvements +  selling expenses  ) = gain

[Opus 17]

Yes, the solar tax credit can be applied toward capital gain taxes.

You may owe capital gains tax when you sell your personal home. Capital gains is the difference between the adjusted cost basis and the selling price, and does not necessarily have anything to do with the amount of cash you receive.   However, in most parts of the country, homes have gone up significantly in value over the past two years, and that would represent your capital gains.

If the reason you’re selling is due to an unforeseen financial hardship, you may qualify for a partial capital gains exclusion.  The allowable hardships and a calculation for the partial exclusion are explained in publication 523.

[Mike9241]

if you are moving for a job change, health reasons or the nebulous unforeseen circumstances you may be able to claim a partial exclusion. 

look at IRS PUB 523 starting on page 6

https://www.irs.gov/pub/irs-pdf/p523.pdf