Solar energy credit for rental home

[psk1]

I bought a residential property last year and rented it out. This was a new construction and I had to pay for the solar system as it was required by the City. Can I claim the cost I paid in my returns?

Thanks.

[PatriciaV]

The cost of the solar system may be reported as an improvement asset under your Rental Property. 

For instructions on entering this asset, see How do I handle capital improvements and depreciation for my rental?

[edited 4/14/25 | 1:28 PDT]

[Opus 17]

The section 25D credit on form 5695 that applies to homeowners is not allowed for business property.  Specifically, if the home is used less than 80% for personal use, you can only claim the percentage of the credit that applies to personal use (which would be zero for a full time rental). 

I believe there is a separate credit under section 48 that is allowed for business property, but I don't know anything about how to claim that credit.