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).