Question

Solar Panel Tax Credit

Forum|Forum|3 years ago
March 22, 2023
1 reply
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I had solar panels installed on my house in December 2022. The utility work to install a second electric meter was not completed until 2023. This meant the system was not fully turned on and producing electricity until 2023. Can I claim the solar tax credit on my 2022 taxes since that was the installation date or do I need to wait until my 2023 taxes since I didn't have Permission to Operate from the utility until 2023?

Not A Product Question

JohnB5677

Based on the attached quote, you can take the credit if you could generate electricity for your home, even though it wasn't connected to the grid. It must be functioning and providing the home with electricity.

"The system must be placed in service during the tax year and generate electricity for a home located in the United States. There is no bright-line test from the IRS on what constitutes “placed in service,” but the IRS has equated it with completed installation."

See middle column, second paragraph: Homeowner's Guide to the Federal Tax Credit for Solar Photovoltaics

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