Contact UsLet's assume I have an annual federal tax bill of $5,000. Let's assume I purchase a $50,000 solar panel system in 2015. As the federal tax credit expires on 12/31/16, will I be able to carry over my unused tax credit and apply it towards my 2017 tax return? Or do I only have 2 years (2015 and 2016) to consume the tax credit, and thus any unused tax credits not used by 2016 will be wasted?
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Tax Professional Answers
John Stancil
As you probably know, the credit is 30% of the cost of the residential solar panel system without a dollar limitation. There was a prior dollar limit, but it was removed by Congress.
At this point, it is certain that you can carry an remaining credit to 2016. However, the IRS has not ruled if any credit can be carried forward to 2017. I would anticipate that they would issue some guidance on this fairly soon, but they have not done anything yet.
Hope this helps, and sorry I can't give you a more definitive answer.
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511 weeks ago
At this point, it is certain that you can carry an remaining credit to 2016. However, the IRS has not ruled if any credit can be carried forward to 2017. I would anticipate that they would issue some guidance on this fairly soon, but they have not done anything yet.
Hope this helps, and sorry I can't give you a more definitive answer.