Question

Can I claim federal solar credit twice once in 2022 for my primary home (panels installed in 2022) and once in 2023 for my secondary home (panels installed in 2023) ?

Forum|Forum|3 years ago
November 28, 2022
2 replies
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TurboTax Online

DoninGA

Employee

No, you cannot claim a solar credit on the second home.

The credit can only be taken on your Main Home.

IRS Form 5695, Residential Energy Credits - https://www.irs.gov/pub/irs-pdf/i5695.pdf

Main home. Your main home is generally the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation, won't change your main home.

N

NCPERSON1

also, the tax credit on your main home is limited by the tax liability on Line 18 of Form 1040 (i.e. Line 22 can not be less than zero). if you are unable to take the whole credit in 2022, the rest can be carried over to a future year. (the electric vehicle credit can NOT be carried over to a future year)

A

AmeliesUncle

Yes.

While some energy credits require it to be your main home, the credit for solar does NOT need to be your main home. It merely needs to qualify as your Residence.

T

TomD8

Employee

See Q&A number 6 on page 3 of this IRS Notice:

https://www.irs.gov/pub/irs-drop/n-13-70.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

N

NCPERSON1

@TomD8 - can you help me decipher the Question 6 answer as there appear to be dueling responses.....

if I read correctly, section 25C is for non-residential and 25D is for residential.

With respect to the credit under § 25D, fuel cell property credits are not available for
second homes. Section 25D(d)(3) requires fuel cell property to be installed on or in
connection with a dwelling unit that is used as the taxpayer’s principal residence (within
the meaning of § 121). However, a taxpayer may claim a § 25D credit for other
qualifying properties described in § 25D that are not fuel cell properties (solar electric
property, solar water heating property, small wind energy property, and geothermal heat
pump property) installed in or on a dwelling unit used as a second home or a vacation home by the taxpayer. But a taxpayer may not claim the § 25D credit for expenditures
for improvements made to an investment property, such as rental property, that is not
also used as a residence by the taxpayer.