Using the Solar and EV credits
This year we bought an used electric vehicle and had a small solar installed. I am wondering what credit will be used first on our tax return? I know the solar credit can get carried forward if I don't use it, so I would rather use the EV credit first and postpone the solar credit.
Thanks for your help. We love the new forum!
Comments
-
The Electric Vehicle Credit now known as the "Clean Car Credit" and the Solar Credit are calculated individually on your tax return. Since the Electric Vehicle Credit is a non-refundable credit and cannot be carried forward that credit will be used first towards your tax liability (if your vehicle qualifies for this credit). You can check by clicking the below link to the IRS website. Then the solar credit also a non-refundable credit will be applied to the remaining tax liability. If the solar credit is more than your tax liability, then the remainder will be carried forward to next years tax return.
-
Thank you so much. Your team is the best! I can confidently file my return now, knowing if I have any credits left over, then I can use the solar credit next year!
-
I am looking for information on the solar system tax credit. i installed the system 2 years ago but had no tax liability that year so the credit carried over. I used part of it last year. Is the remaining amount still a carry over credit for this year?
-
Yes, any remaining credit would be carried forward until you do not have any of the credit left.
