Solar Energy Question

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Freckkles55
Freckkles55 Member Posts: 1 Newcomer
edited January 15 in Credits/Deductions

I have recently installed solar roof panels, I understand the I get a 30% tax credit. I pay taxes through my job and I do not owe any taxes, I have always received money back. Am I able to receive the 30% tax credit?

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  • RBorch
    RBorch FreeTaxUSA Agent Posts: 22
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    Solar tax credit is a Nonrefundable credit. Nonrefundable Credits are credits that you subtract from your tax liability. These credits may reduce your tax to zero. If these credits are more than your tax, the excess is NOT refunded to you. If your tax liability is already 0 then you would not receive this credit on your return. If you do have a tax liability, then the credit will be applied to help reduce your tax that you owe. If there is any of the refund leftover, then that can be applied to your taxes the next year.