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March 26, 2025
Question

Residential Solar Tax Credit Recapture

  • March 26, 2025
  • 1 reply
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I am taking the 2024 Solar Tax credit for my multi-unit. The solar panels are only being used for the apartment I occupy. I'm planning on selling my home in summer 2025.
I've found data on the recapture rule for commercial use but have not found any data on the recapture rule for anything residential. 

Question is, if I sell my home, will I have to pay back the tax credit if I used it for residential purposes? 

1 reply

March 26, 2025

If you are ONLY using the panels for YOUR home, and are claiming the credit ONLY for your personal residence, then no, the solar credit for residential energy property does not have a recapture component mentioned in the instructions for form 5695 nor is it a question on the form or if you sell your home. 

 

 

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