Solar panel credit

[rose323]

I have a client who claims the solar panel company told her she can receive up to $11,000 dollars back 

through her refund for adding solar panels to her new home. The taxpayer is a first-time homebuyer and received an FHA loan. Is there an article in that I can show my client the actual credit?  She is a new client and I want to make sure to give her the right information.

[rose323]

In addition, if they are only making payments are they able to write off the whole amount at one time. 

[qbteachmt]

The IRS knows:

https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-question...

https://www.irs.gov/instructions/i5695

TurboTax knows:

https://turbotax.intuit.com/tax-tips/going-green/federal-tax-credit-for-solar-energy/L7s9ZiB4D

Often, the installer does not know. They know nothing about your client's finances, typically.

[qbteachmt · Accepted solution]

I found another article that might be helpful to your client:

https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics

[rose323]

Awesome, Thank you

[sjrcpa]

Those solar salespeople will say anything to make sale.

If client purchased and financed it, it still qualifies. If they are leasing it, then it does not.

[BobKamman]

But not your clients, right?  Because they always call you first before making tax-related decisions.

Solar is a worthy cause, but a $30,000 system is priced at $40,000 as soon as a $10,000 tax credit is offered.  I just had a client who bought one and then converted a chunk of IRA money to a Roth, so that his tax liability would use up the credit.  Not something I would have suggested, but in this particular case I wouldn't condemn it.  Then there is the client with a $6,000 carryover credit and no taxable income for the rest of her retirement life.  

[sjrcpa]

"Then there is the client with a $6,000 carryover credit and no taxable income for the rest of her retirement life.  "

I've got one of those, too.