Residential Energy Efficient Property Credit (Solar)

[peggysioux5]

Is the residential energy efficient property credit for solar a one-time credit?  If a homeowner received the credit for installing solar panels on residence and later moves and installs solar panels on new residence (if credit is still available), would taxpayer be eligible to claim credit a second time?

[schirallicpa]

I believe it's one and done.

 

[joanmcq]

What if you add on to your existing solar array. I’m thinking of adding a battery backup.

[peggysioux5]

IRS §25D does not state credit is limited to one time.  The Taxbook shows the credit available for either the principal residence or second home.  My research leads me to believe a taxpayer is able to take the credit more than once; however, I would feel more comfortable if I found something in writing stating the credit can be taken more than once.  There seems to be differing views between tax preparers.

[Lee B]

Lifetime credit limit of $500   https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-questions-and-answers

[peggysioux5]

Lifetime credit is for nonbusiness energy property.  My question applies to residential energy efficient property credit which is not limited to lifetime credit of $500.

[Lee B]

More than likely your tax software will assist you:

"Residential Energy Efficient Property Credit
Limit Worksheet—Line 14

1. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 181._____

2. Enter the total of the following credit(s) if you are taking the credit(s) on your 2020 income tax return:  

  + Foreign Tax Credit, Schedule 3 (Form 1040), Part I, line 1 _____

  + Credit for Child and Dependent Care Expenses, Schedule 3 (Form 1040), Part I, line 2 _____

  + Credit for the Elderly or the Disabled, Schedule R (Form 1040), line 22 _____

  + Nonrefundable Education Credits, Schedule 3 (Form 1040), Part I, line 3 _____

  + Retirement Savings Contributions Credit, Schedule 3 (Form 1040), Part I, line 4 _____

  + Nonbusiness Energy Property Credit, Form 5695, Part II, line 30 _____

  + Alternative Motor Vehicle Credit, Personal use part, Form 8910, Part III, line 15 _____

  + Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles), Personal use part, Form 8936, Part III, line 23 _____

  + Child Tax Credit and Credit for Other Dependents:

If filing Form 2555: Pub. 972, Child Tax Credit and Credit for Other Dependents Worksheet, line 16.

If not filing Form 2555: Pub. 972, Line 14 Worksheet, line 14

 _____

  + Mortgage Interest Credit, Form 8396, line 9 _____

  + Adoption Credit, Form 8839, line 16 _____

  + Carryforward of the District of Columbia First-Time Homebuyer Credit, Form 8859, line 3 _____

  Note. Enter the total of the preceding credit(s), only if allowed and taken on your 2020 income tax return. Not all credits are available for all years nor for all filers. See the instructions for your 2020 income tax return.2. 

3. Subtract line 2 from line 1. Also enter this amount on Form 5695, line 14. If zero or less, enter ‐0‐ on Form 5695, lines 14 and 1"