solar credit for a business

Forum|Forum|1 year ago
December 11, 2024
2 replies
13 views

If the business has a net loss, what happens to the 30% solar credit? It's a Sch C sole proprietor.

ProSeries Professional

This topic has been closed for replies.

Jim-from-Ohio

Intuit Community Champion

carried forward: https://www.taxaudit.com/tax-audit-blog/how-to-write-off-solar-panels-for-a-sole-proprietor-business

T

TaxGuyBill

Level 15

The credit first offsets income tax on the 1040 (subject to some limits, including some AMT rules).

If the credit is not used, the General Business Credit is usually carried BACK one year, then forward. I had stuck in my mind there were some different rules for the carryback for business energy credit, but I would need to look that up.

As a side note, it may not be a 30% credit; it could be higher or lower. The rules for the business credit are much more complex now.

G

GretaAuthor

Level 7

How many years forward can the credit be claimed?

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TaxGuyBill

Level 15

After the carryback, I think it is 20 years.

A quick Google search seems to indicate the special-modified carryback for the business energy credit is 3 years.

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