How to represent the Federal Solar Income Tax Credit in ESP

I plan on installing a home solar system this year (2019) and capture the Federal Solar Income Tax Credit among other incentives. The tax credit may roll over to following years if one doesn't have enough income tax liability to offset it immediately. How should I enter this in ESP? Is it reasonable to simply enter the Solar cost net any incentives as a one time special expenditure?


dan royer's picture

You could enter your solar system as a special expense, or you could just do nothing with the expense and pay for it out of discretionary spending. I guess it depends on the cost etc. For the tax credit, you could create special receipts for the year or years and amounts. Or, you could enter the cost of the solar thing net of those receipts. I would do what seems most clear to you. I'd probably enter the cost as a special expense and then represent the tax credits as special receipts.


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