Solar credits

[Indiamoon7]

Can I claim my solar equipment qualified costs for both 2023 and 2024 on my 2024 return if i did not claim anything on my 2023 return?

[AnnetteB6]

Only if the costs are part of the same installation and the installation was not complete until 2024, then you can claim the total cost on your 2024 return even if a portion of it was paid in 2023.

If the amount paid in 2023 was for a different project that was also completed in 2023, then it can only be claimed on your 2023 return.

[Indiamoon7]

Thanks for the info.  I'm still not clear though.  I am leasing solar equipment and began paying in 2023.  Installation of equipment was done near end of 2023, but I did not claim any of the costs incurred to that point on my 2023 return.  That's why I wondered if I could just claim all expenses related to the same equipment in 2024.

Or should I amend my 2023 return to get credit for 2023 costs and just do the 2024 costs on my 2024 return?  I'm only speaking of my state return, of course, I won't be getting any federal credit due to the fact that I'm leasing solar equipment.

[AnnetteB6]

If you are leasing the solar equipment, there is to tax credit available.  You must have purchased the solar equipment in order to claim the tax credit.  

That being said, since the installation was complete in 2023, if you had purchased the equipment then the tax credit would be claimed on your 2023 return, not 2024.  You would have claimed the total cost regardless of whether you were making payments in later years.  

See the following information to learn more about the requirements for the solar tax credit:

Federal Tax Credit for Residential Solar Energy
 

@Indiamoon7