Solar Panels

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We bought solar panels in November 2022 and signed a loan security agreement. Do we enter the full cost of panels on form 5695?

Not A Product Question

DawnC

Employee Tax Expert

You don't take the credit until the year the solar project is placed in service, meaning when it is installed and generating electricity. If the system was installed and operational in 2022, you claim it on this tax return. If it is was not placed in service until 2023, you take the credit on next year's taxes.

Solar Credit

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Opus 17

Level 15

@DawnC wrote:

You don't take the credit until the year the solar project is placed in service, meaning when it is installed and generating electricity. If the system was installed and operational in 2022, you claim it on this tax return. If it is was not placed in service until 2023, you take the credit on next year's taxes.

Solar Credit

Also, you claim the full price as of the date the solar panels are installed, and you only claim the credit one time, even if you are paying over several years.