solar energy tax credit and AMT

[ace75ri]

After installing Solar panels in 2019, I will be able to claim a tax credit of $13,200.  It looks like AMT credit from previous year is reducing the credit however.  Is this the cause of my reduced credit.

Without the Solar credit,  my refund is 12,000 if we itemize and 9400 if we take standard deduction.  If I then claim the solar credit, I get a refund of 16,000.  Why is this happening.  I thought the solar tax credit was a pure credit off of tax liability.  My tax liability is in excess of the $13,000.

[JosephF8]

Yes as both the AMT credit and the Solar Credits are non-refundable they and other non-refundable credits are limited in total by your tax liability.

[ace75ri]

my tax liability is MORE than the solar credit and the AMT credit combined, yet I am only getting the greater of the two, not both.  looks like I am going to forgo some AMT credit by taking the Solar credit, which is not fair

[JosephF8]

Those are not the only non-refundable tax credits Other examples:

The Child Tax Credit- Credit for Other Dependents.

The Foreign Tax Credit

Credit For Child and Dependent Care Expenses

Education Credits

Retirement Savings Contribution Credit

If this doesn't answer the question you may want to call in for live help.

[ace75ri]

I called for live help.  Your CPA/Attorney said that credits are not all "stackable".  An AMT tax credit for a previous year  AND a solar energy tax credit for current year are not added.  Good news is that if you forgo the credit in the current year, you can claim it in the future