Solar Tax Credits and Home Basis

Oct 20, 2022 Last reply: 3 years ago 1 Replies

I was wondering if there is any effect on home basis for claiming the solar tax credit for installing solar panels. As a concrete example, assume that installing such panels on one's home costs $20,000 and qualifies for the 30% tax credit ($6,000).



Is the basis in the home increased by the full $20,000 cost of the panels or only by $14,000?


$14K. This calculation is true for all the other energy related tax credits as well.

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