I added solar to my house this year, is that a worthy tax credit?

To enter Home Energy Credits -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credit
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits, click the start or update button

 

Or enter energy improvements in the Search box located in the upper right of the program screen. Click on Jump to energy improvements

Installing renewable energy equipment on your home can qualify you for Residential Clean Energy credit of up to 30% for equipment placed in service in tax years 2022 through 2032.

 

The qualified energy-saving equipment covered by the Residential Clean Energy Credit includes:

• solar-powered equipment that generates electricity or heats water
• solar power storage equipment with a capacity of at least 3 kilowatt hours (kWh) is required.
• qualifying installation and labor costs

The tax credit doesn't apply for systems that you lease or for systems that you use to heat a swimming pool or hot tub.

 

This tax credit is non-refundable.  It can offset your income tax liability dollar-for-dollar, but any excess credit won’t be refunded. 

 

However, if the credit exceeds your tax liability for the year, you can deduct the unused portion in future years so long as the credit remains in effect

 

For more information, please read this TurboTax article: Federal Tax Credit for Residential Solar Energy

 

@erin_oceanside