Solar Panels

[Doug Tolliver]

I have Vivint and Vivint has a program to get people to install solar panels. I was told that there was a $13,500 tax incentive for clean energy and that I could get it when I filed my 2022 taxes then use the money to put down on the cost of the panels or spend it as I want. Where do I enter the information in TurboTax? I found one area on the form but it keeps referring to the credit as a carryover to 2023. I signed the paperwork for the panels in early September. 

[Cynthiad66]

A Solar Energy Tax credit is a nonrefundable credit. Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.) It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it.

Note: To claim the Solar Energy Federal Tax credit, you need to complete and attach the IRS Form 5695 to your federal tax return.

For info on where to enter qualified energy-saving improvements, go here.