Question about Federal tax credit

[Rothgarr]

I'm sorry if this has been discussed a bazillion times...

But if our Federal tax credit from the system we had installed last month is $16.5k but we are only paying just under $13k in taxes, do the remaining credits roll over to 2019? Or do we lose them?

I am because we are also looking at a PHEV car and the federal tax credit is "up to $7,5k" on that mode, meaning that if you owe less than that you lose the remaining (it doesn't carry over to the next year).

Thanks so much!

EDIT: Looks like I found my answer:

https://news.energysage.com/congress-extends-the-solar-tax-credit/

Solar credits DO roll over according to that link.

I also learned that PHEV automobile credits are used FIRST and then solar. I could technically buy the car this year and have $24k in tax credits. The $7.5 is applied first along with the solar up to what we owe. Then anything left rolls over to next year.

[J.P.M.]

Yes it has been asked. See IRS form 5695.

I'm not sure where you get $24K in tax credits from (($16.5 * 0.3) + $7.5K). The fed. solar tax credit is 30%, not 100%.

[Rothgarr]

Yes it has been asked. See IRS form 5695.

I'm not sure where you get $24K in tax credits from (($16.5 * 0.3) + $7.5K). The fed. solar tax credit is 30%, not 100%.

Sorry I wasn't clear in my post, the $16.5k IS the tax credit from our solar that we installed last month (the system cost around $60k)

[J.P.M.]

Sorry I wasn't clear in my post, the $16.5k IS the tax credit from our solar that we installed last month (the system cost around $60k)

Understood. Must be a pretty big system.

[matsonaustin]

You can claim a portion of the solar tax credit each year for up to 5 years. So yeah, you can break it up over 5 years to fit within your taxable income.

Many solar installers use 18 month financing for the tax credits though, it is typically the limiting factor.