Author Topic: Solar energy credit  (Read 1613 times)

detailoriented

  • 5 O'Clock Shadow
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Solar energy credit
« on: December 19, 2016, 06:23:08 PM »
Hello All,

We are considering a solar installation.   One of the big cost mitigations is the federal tax credit.  This credit is non-refundable.  The total credit for our installation would be about  $8k.  The problem I am seeing is that my tax liability is about $4.5k BEFORE child tax credits of $3k.

Here are my questions:
1) Is the following statement true.  In the tax year of the installation my tax liability would be driven to zero by the solar credit and then the child tax credit would drive me to negative $3k liability.

2) Considering I cannot fully utilize the credit in one year does the remaineder remain usable the year after the installation?

3)  Assuming the answer to number 2 is yes:   Is the credit recalculated the secomd year with changes to the solar tax credit program or does the credit remainder remain fully intact by the rules of the year of installation?   An example would be if the solar tax credits went away the second year,  would the remainder of the first years credit still be usable?

Thank you,

DO

TomTX

  • Walrus Stache
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  • Location: Texas
Re: Solar energy credit
« Reply #1 on: December 25, 2016, 07:28:37 PM »
Can you do a Roth conversion to generate tax liability now instead of when you draw a Traditional (IRA/401k/403/whatever) later?

ender

  • Walrus Stache
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Re: Solar energy credit
« Reply #2 on: December 26, 2016, 06:56:25 AM »
Can you do a Roth conversion to generate tax liability now instead of when you draw a Traditional (IRA/401k/403/whatever) later?

Ooooh I never thought about this before.

We've considered solar but the ROI is not that great (particularly if you don't use up the tax credit). But this way you could guarantee you max out the tax credit..

Calvawt

  • Bristles
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  • Location: Central CA
Re: Solar energy credit
« Reply #3 on: December 30, 2016, 09:22:04 PM »
i think it carries over to the next year.  I didn't have that issue when I installed 2.5 years ago as my taxes are high enough.  Moving to a new house and will do it again in 2017!