The economic aspect of the decision to purchase solar energy usually includes the Solar Energy Tax Credit factor.

 

Our purpose here is to examine ONLY the tax credit aspect of a solar energy purchase.

 

The Solar Energy Tax Credit is a non-refundable tax credit.  The credit can be used to reduce the taxpayer’s tax liability to zero but it cannot create or add to the taxpayer’s tax refund.  

 

If a taxpayer has a Solar Energy Tax Credit that exceeds his tax liability for the year in which he/she invested in the solar energy system, the excess credit is carried forward to the next tax year.

 

We encourage taxpayers to consult a tax professional to determine the extent to which they will benefit from the tax credit before contracting for a solar energy system.  There are situations where the taxpayer receives no tax benefit to help offset the cost of the solar system.

 

We do not charge a fee for this consultation for anyone (you do not have to be our client to benefit from this free consultation).