“off-site community solar tax credit”
on what form and line does one put the purchase price of a share (2%) of an OFF-site community solar project for a tax credit?
it is NOT form 5695, as that is for on-site fuel cell residential property tax credit.
it is NOT form 3800, as that is a general business credit, and I’m not a business.
it is NOT form 7207, as that is for manufacturers of solar energy components.
it is NOT schedule 3, part 1, line 5, form 5695, as that form is for on-site fuel cell residential property tax credit.
according to
https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
What is the federal solar tax credit? The federal residential solar energy credit is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar PV system paid for by the taxpayer. (Other types of renewable energy are also eligible for similar credits but are beyond the scope of this guidance.) The installation of the system must be complete during the tax year.
In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. There is no maximum amount that can be claimed.
Am I eligible to claim the federal solar tax credit? You might be eligible for this tax credit if you meet the following criteria: ... Or, you purchased an interest in an off-site community solar project, if the electricity generated is credited against, and does not exceed, your home’s electricity consumption.
I PARTICIPATE IN AN OFF-SITE COMMUNITY SOLAR PROGRAM?
The answer depends heavily on your specific circumstances. The IRS states in Questions 25 and 26 in its Q&A on Tax Credits (https://www.irs.gov/pub/irs-drop/n-13-70.pdf) that off-site solar panels or solar panels that are not directly on the taxpayer’s home could still qualify for the residential federal solar tax credit under some circumstances. However, community solar programs can be structured in various ways, and even if you are eligible for the tax credit, it may be difficult to claim due to other tax rules.
unfortunately, the above articles do not specify where on the schedule 1040, or schedule 1, or schedule 3, or some other irs form, that one lists the purchase price and deducts the 30% tax credit from the tax bill.
so, where does one put the purchase price of their share of the community OFF-site solar panel project, and the 30% solar tax credit on the tax form, which tax form and what line?
