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Solar Credit Timing

For purposes of the home solar credit, timing and treatment of expenditures are treated as made when the original installation is completed, except those expenditures in connection with the construction or reconstruction of a structure are treated as made when the taxpayer's original use of the constructed or reconstructed structure begins. (Code Sec. 25C(e)(1); Code Sec. 25D(e)(8))

Example: The costs of an installation of solar energy property that was started in 2022 but not completed until 2023 will be eligible only for a credit of 22% of the costs on the 2023 return, even though some or all of the costs were paid in 2022 when the credit percentage was 26%.
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Solar Credit Timing

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