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