To claim the credit, you must file IRS Form 5695 as part of your tax return; you calculate the credit on the form, and then enter the result on your 1040. If you end up with a bigger credit than you have income tax due—a $3,000 credit on a $2,500 tax bill, for instance—you can't use the credit to get money back from the IRS. Instead, generally, you can carry the credit over to the following tax year. However, it is not yet clear whether you can carry unused credits to years after the solar credit expires.

Question

I had solar panels installed last year. What form do I fill out for the tax credit?

Forum|Forum|5 years ago
February 1, 2021
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RayW7

To claim the credit, you must file IRS Form 5695 as part of your tax return; you calculate the credit on the form, and then enter the result on your 1040.

If you end up with a bigger credit than you have income tax due—a $3,000 credit on a $2,500 tax bill, for instance—you can't use the credit to get money back from the IRS.
Instead, generally, you can carry the credit over to the following tax year.
However, it is not yet clear whether you can carry unused credits to years after the solar credit expires.