With the new 2022 law, the federal solar tax credit is back up to 30%. This tax credit is non-refundable, but I understand that the credit can be carried over for several years.
My question is: How many years can the federal solar tax credit be carried over for? Is it current year plus 5 more? Current year plus 4 more or something else?
Hi vdb5422,
Thank you for asking. Yes, you are right. The Inflation Reduction Act of 2022 allows the solar tax credit up to 30% and it is non-refundable. If you can't use the solar tax credit, you can roll the tax credit back one year and carry the credit forward for up to five years or until the credit was fully used whichever is shorter. In answer to your questions, if you used the credit for current year, and still have credit left, it can be carry forward for 5 years. Here is some other resource regarding the credit for your reference. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.energy.gov/sites/default/files/2021/02/f82/Guide%20to%20Federal%20Tax%20Credit%20for%20Residential%20Solar%20PV%20-%202021.pdf
https://turbotax.intuit.com/tax-tips/going-green/federal-tax-credit-for-solar-energy/L7s9ZiB4D
We hope this answer your questions. Please feel free to contact our TurboTax Live Tax Expert if you have any further questions and we can assist you regarding to your personal tax.