Question

Energy credit

Forum|Forum|5 years ago
April 11, 2021
1 reply
0 views

Inputting my solar system cost info for state (HI) refund for my new 2020 system, never filed or made claims on it before. Last question says “Amount of consumer incentive premiums, costs used for other credits, and utility rebate received for this system”. Are they referring to what federal says they PLAN to credit me after my 2020 tax filing? I’ve never been credited. I feel like it is wanting me to deduct the federal credit from the cost of the system, which then would give me a lesser amount to receive state credit based on that calculation. Does anyone know? Total solar cost 38,110.3. Fed credit says I’ll get 9908.07 back. Am I to deduct the future fed rebate from solar cost, new total 28,201.62 and I get rebate based on that amount? I hope I’m reading too far into this.

A

Ali zAuthor

I leave it as is without deducting the federal (as I’m hoping you do not), then the next page says this,

“Your credit will be based on $38,110. This is your total cost minus the amount you've already received as other credits, rebates, or incentives.”

what do we think?

J

JohnW152

The amount you're seeing shouldn't reflect any deduction for the credit you receive on your federal return.

According to HOW TO TREAT THE TAX CREDIT in the Instructions for Form N-342, Renewable Energy Technologies Income Tax Credit, when you claim a refundable credit, you have to reduce the credit amount by 30% unless

All of your (and your spouse’s) income is retirement income such as pension distributions, social security, or distributions from a public retirement system that is exempt from Hawaii income tax; or
Your Hawaii adjusted gross income (AGI) is $20,000 or less ($40,000 or less if you are married filing a joint return).

This may account for what you're seeing. If not, please provide additional details.