Asked by Dave  |  Submitted April 15, 2016

We are considering buying a Solar PV system.for $30,000 and pay about $3000/year in federal tax. Can the 30% tax credit be carried forward?

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  Answers  |  3

April 15, 2016

Hi Dave.
Interesting question. We recently attended a solar forum about this.

This is what we learned from the forum:
The IRS has not issued guidance on how long the tax credit can be carried forward. It is clear that it can be carried forward through 2016, and it appears that it may be able to be carried forward beyond 2016. The energy efficiency tax credit is technically "non-refundable" which means at the end of the year, you can't get back more in credits than you paid to the government in taxes throughout the year. If you are unable to claim the entire 30% of your purchase for these 5 products in one year, you can carry forward the unclaimed portion to future years;
Geothermal Heat Pumps
Solar Panels
Solar Water Heater
Small Wind Energy Systems
Fuel Cellsin

The tax credit for all other products CAN NOT be carried over to future years.
https://www.irs.gov/Credits-&-Deductions/Individuals/Residential-Energy-Efficient-Property-Credit

Feel free to contact us directly for more information or to discuss any other concerns. No obligation

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$commenter.renderDisplayableName() | 01.20.17 @ 00:03

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April 16, 2016

I did find that ensued credit can be carried forward of Solar Panel systems

$commenter.renderDisplayableName() | 01.20.17 @ 00:03

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April 16, 2016

Glad I was able to help. If you don't mind, can you share your insights with the solar panels? We are always interested in other perspectives. If not, no worries. Thanks

$commenter.renderDisplayableName() | 01.20.17 @ 00:03

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