Question

Solar Tax Credit between years

Forum|Forum|4 years ago
April 2, 2022
1 reply
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We are in the process of completing a solar installation on our primary home. For this project we have built a solar pavilion that will hold the solar panels for our home. The solar pavilion was completed in Dec 2021, however the solar panels and remainder of the system is being completed in 2022. It is my understanding that the solar structure cost also applies for the solar tax credit. Since the pavilion was completed in 2021 but the solar panels were not installed until 2022 does the entire cost solar structure and solar system apply for the tax credit on my 2022 filing?

T

TomD8

Employee

For purposes of the solar tax credit, costs are treated as being paid when the installation is completed. Also, "No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify
solely because the property constitutes a structural component of the structure on which it is installed."

https://www.irs.gov/pub/irs-pdf/i5695.pdf

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