Solar Install Tax Credit

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GermanInUS
GermanInUS Member Newcomer
edited January 15 in Credits/Deductions

Hi there!

First thanks a lot for taking the time to answer our questions!

I had a solar system put on my roof this year. I own the system, so plan on adding it to my taxes to get the rebate.

All I got from the installer (and they said that's all I need) is three invoices, not itemized. First one lists the down payment amount and that I paid, only one line item with the name 'Down Payment Solar Installation'.

Second one lists the first half and that I paid. Only one line item with the name 'M1 Solar Installation'.

Third one lists the first half and that I paid. Only one line item with the name 'M2 Solar Installation'.

It does include the dates, the company with contact info, etc.

Are those enough?

Do I need anything else on them?

Thanks a lot in advance!

Best Answers

  • Taxlady06
    Taxlady06 FreeTaxUSA Agent
    Answer ✓
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    For the solar credit, you will enter the total amount paid for your solar system. Qualified expenses may include labor costs for onsite preparation, assembly or original installation of the property and for piping or wiring to connect it to the home.

    If the invoices you have only show the payments made, you can use these to determine your total cost for the system if your solar provider will not provide you with a full invoice. Additionally, you can reach out and ask for a full invoice to simplify the process.

    Please keep in mind that the credit is nonrefundable, so the credit amount you receive can't exceed the amount you owe in tax. You can carry forward any excess unused credit, though, and apply it to reduce the tax you owe in future years. Do not include interest paid including loan origination fees.

    Thank you for joining our community!

  • MatthewD
    MatthewD FreeTaxUSA Team
    Answer ✓
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    Hi GermanInUS,

    Yes, that is all that you need. The credit is calculated on the total cost, plus installation costs. When you get ready to file for that credit, see the Energy Credit section. Also, what you do not use this year as a credit, we will automatically carry over to next year.

  • KristineS
    KristineS FreeTaxUSA Agent
    Answer ✓
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    Hi GermanInUS,

    FreeTaxUSA software has a variety of prompts and questions to help you claim the clean energy credit in the Home Energy Credit section for the installation of your solar system in 2023.

    The total amount you paid is the cost you will enter. Keep all your records and details. There may be some additional separate information to provide on the installation, but that will be prompted by the software based on other answers.

Answers

  • PhotMan
    PhotMan Member Newcomer
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    Where in the Home Energy Credit screen is the line for solar installation? I only see Central Air, Natural Gas Heaters, Natural Gas Boilers, Heat pumps, and Biomass. I see no entry area for solar.

  • KeriC
    KeriC FreeTaxUSA Agent
    edited February 27
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    There are several questions that will need to be answered to reach the page in question. For the lines specific to solar installation, be sure to select yes to the following on the page titled "Enter your home information"

    The next page as you continue in the software will allow you to enter your solar installation costs.