Solar system tax deductions?

[wanaberetiree]

Hello

I installed a solar system in 2022.

Paid ~30% of the total cost and will pay in full this year.

Question - can I deduct the full cost in the 2022 tax filing?

Thx

 

[braumeister]

Depends. Which galaxy is it in?


Sorry, just couldn't resist.

 

[wanaberetiree]

Depends. Which galaxy is it in?


Sorry, just couldn't resist.

Galaxy name is California

 

[skyking1]

I think it is tied to the year you actually spend the $$. I know that you can carry the deduction forward as a credit, but not sure for how long.
Why can't you file for the credit next year too?

 

[wanaberetiree]

I think it is tied to the year you actually spend the $$. I know that you can carry the deduction forward as a credit, but not sure for how long.
Why can't you file for the credit next year too?

I’m not saying I can’t just trying to understand this better

Thx!

 

[aja8888]

I’m not saying I can’t just trying to understand this better

Thx!

What do the California and Federal energy tax credit rules say about your situation?

 

[wanaberetiree]

No clue

 

[Chuckanut]

A solar system deduction?!?!?

That makes Mr. Musk a two time winner. Once for selling you a photovoltaic system for your house. And the second time for selling you a ticket to Mars.

I am in the process of possibly adding a more efficient heat-pump mini unit to my home. So I am interested in the answer.

 

[camfused]

I think it is tied to the year you actually spend the $$. I know that you can carry the deduction forward as a credit, but not sure for how long.
Why can't you file for the credit next year too?

The tax credit can be carried forward for up to 5 years. So, if you have a $5000 credit, you can use $2000 of it this year, and $3000 next year.

In my case, I plan on carrying the tax credit forward for 2 or 3 years before I use it.

 

[skyking1]

A solar system deduction?!?!?

That makes Mr. Musk a two time winner. Once for selling you a photovoltaic system for your house. And the second time for selling you a ticket to Mars.

I am in the process of possibly adding a more efficient heat-pump mini unit to my home. So I am interested in the answer.

The energy star page has a good summary for your case.
https://www.energystar.gov/about/federal_tax_credits/air_source_heat_pumps

 

[Aerides]

This should give you the info you need:

https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics

 

[wanaberetiree]

The tax credit can be carried forward for up to 5 years. So, if you have a $5000 credit, you can use $2000 of it this year, and $3000 next year.

In my case, I plan on carrying the tax credit forward for 2 or 3 years before I use it.

Ok sounds good
But can I claim full credit instead of carrying forward if I paid it in two years.