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Level 1
posted Nov 16, 2022 9:18:55 AM

Solar Panels

Hi There

 

I read the posts but still don't understand.

 

If I pay $30K for solar system

Credit is $9K

My taxes I owe at the end of the year is $3K

If I understand, the $9K will eliminate the $3K I would owe, leaving me with no payment to IRS for $3K?

What happens to the other $6K of the $9K I don't use please

 

Thank you 

Diane

1 1 568
1 Replies
Expert Alumni
Nov 16, 2022 10:14:18 AM

Any credit available to you that is not used in the year of the installation of the solar panel system can be used in other years. The Solar Tax Credit rollover lets you roll the tax credit back one year and carry the credit forward for up to five years.

 

This enables you to take the credit over several years if you are limited by the amount of your tax liability.

 

 I hope this clarifies the issue for you!