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rroberson
New Member

Our roofing and solar installation was $24,800 so we were expecting a 30% credit of $7,440 yet this tax program gives us a credit of only $3,600. Why?

 
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1 Best answer

Accepted Solutions
LeeM
New Member

Our roofing and solar installation was $24,800 so we were expecting a 30% credit of $7,440 yet this tax program gives us a credit of only $3,600. Why?

Those credit percentages changed due to the Tax Law changes in 2018. 

You are entitled to a 10% credit for the roof and a 30% credit for the solar installation. I would see if that math works out to be $3600. 

The other most common reason this is happening is the Residential Energy Credit is a non-refundable credit which means it can only lower your tax liability.  It cannot create a refund.  If you already have a $0 tax liability, then you would not qualify for the credit.

Now, if you are claiming a credit for the Residential Energy Efficient Property portion of the credit which is related to solar, geothermal and wind power and fuel cells, then your unused credit will be carried forward to future year(s) to be applied against your future tax liability.


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3 Replies
LeeM
New Member

Our roofing and solar installation was $24,800 so we were expecting a 30% credit of $7,440 yet this tax program gives us a credit of only $3,600. Why?

Those credit percentages changed due to the Tax Law changes in 2018. 

You are entitled to a 10% credit for the roof and a 30% credit for the solar installation. I would see if that math works out to be $3600. 

The other most common reason this is happening is the Residential Energy Credit is a non-refundable credit which means it can only lower your tax liability.  It cannot create a refund.  If you already have a $0 tax liability, then you would not qualify for the credit.

Now, if you are claiming a credit for the Residential Energy Efficient Property portion of the credit which is related to solar, geothermal and wind power and fuel cells, then your unused credit will be carried forward to future year(s) to be applied against your future tax liability.


rroberson
New Member

Our roofing and solar installation was $24,800 so we were expecting a 30% credit of $7,440 yet this tax program gives us a credit of only $3,600. Why?

It did not credit %10 for the roof.
LeeM
New Member

Our roofing and solar installation was $24,800 so we were expecting a 30% credit of $7,440 yet this tax program gives us a credit of only $3,600. Why?

Can you check if your tax liability on line 15 of your Form 1040 is zero. If it is, then that means you used all of the credit you could and the rest will be carried forward to next year. Let me know if that is not the case.

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