I know this is NOT a tax forum, I am just trying to get some assistance in questions.

Question for anyone that installed a Solar Panel system on their home. How did you receive the government rebate ?? Was it given to you as a check or part of your Federal Income tax refund ?? The reason I ask is in 2021 my father had a Solar panel system installed on his home. He was told that he would receive a check from the government for 26% of the purchase price of the system, which they can do whatever they want, however they recommend putting it into the payment of the solar system . His system cost $44090 so he **should** be receiving a check of $11463.40 which he wants to put into the payment of his solar panel system. He does not make a lot of money as he is retired so I am trying to do his taxes with Taxact.com. When I come to the part where they ask about the solar panel system I input the information and if I did everything correct, it **Looks** like my father is receiving part of the rebate in his 2021 refund and I am guessing the other part(s) next year or successive years. Can anyone comment or share how you received your Federal rebate ??? Thank you for reading and info given. God Bless !!!

https://www.energy.gov/eere/so...-solar-photovoltaics


What is a tax credit?
A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000. The federal tax credit is sometimes referred to as an Investment Tax Credit, or ITC, though is different from the ITC offered to businesses that own solar systems.

What is the federal solar tax credit?
The federal residential solar energy credit is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system. (Other types of renewable energy are also eligible for similar credits but are beyond the scope of this guidance.)

The system must be placed in service during the tax year and generate electricity for a home located in the United States. There is no bright-line test from the IRS on what constitutes “placed in service,” but the IRS has equated it with completed installation.

In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. (Systems installed before December 31, 2019 were eligible for a 30% tax credit.) The tax credit expires starting in 2024 unless Congress renews it.

There is no maximum amount that can be claimed.

IF THE TAX CREDIT EXCEEDS MY TAX LIABILITY, WILL I GET A REFUND?
This is a nonrefundable tax credit, which means you will not get a tax refund for the amount of the tax credit that exceeds your tax liability. Homeowners may get a tax refund at the end of the year due to the tax credit, if the reduction in tax liability means there was overpayment during the year. This can often occur when employers deduct taxes for employees over the course of the year. However, such refund is still limited by the taxpayer’s total tax liability. However, you can carry over any unused amount of tax credit to the next tax year.

Not a rebate.

It's a tax credit.

Your tax liability is reduced by the amount of the credit. If the credit exceeds your liability in the current year, you can carry a portion of the credit to the following year.

If you don't have much income or don't pay much in fed income tax, it may take you a very long time to use up $11k in credits. A full half of Americans pay no net federal income tax, so that half of America would be better off leasing the panels. In such instance, the installer typically takes the credit and applies it to reduce the monthly lease amount to the customer.

Thank you everyone for the replies and info !!! God Bless !!!