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Level 1
posted Jun 6, 2019 3:33:05 AM

I purchased solar power system in November 2016 but the installation did not start until mid January 2017. Can i claim 30% Federal tax credit in the tax returns for 2016.

I am hoping i can claim the tax credit now so i can pay it towards the amount i have financed for purchasing the system. Also, are there any CA state tax credits as well for solar power systems?

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1 Best answer
New Member
Jun 6, 2019 3:33:06 AM

Unfortunately, it seems not, according to the IRS:

..."costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. For purposes of the residential energy efficient property credit only, costs connected with the construction of a home are treated as being paid when your original use of the constructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that is allocable to the nonbusiness use can be used to determine either credit."

https://www.irs.gov/pub/irs-pdf/i5695.pdf

Also, unfortunately, Solar power in California used to qualify for a tax credit, however it's no longer available since 2005


3 Replies
New Member
Jun 6, 2019 3:33:06 AM

Unfortunately, it seems not, according to the IRS:

..."costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. For purposes of the residential energy efficient property credit only, costs connected with the construction of a home are treated as being paid when your original use of the constructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that is allocable to the nonbusiness use can be used to determine either credit."

https://www.irs.gov/pub/irs-pdf/i5695.pdf

Also, unfortunately, Solar power in California used to qualify for a tax credit, however it's no longer available since 2005


Level 1
Jun 6, 2019 3:33:08 AM

Thank you Michael!

New Member
Jun 6, 2019 3:33:09 AM

More than a pleasure. Hope it helped anyways. Good luck!