In what order do solar (rolling) and EV (non-rolling) tax credits stack?

Question

Location: Texas, USA.

Background: This year I installed a solar system on my house and bought an EV. Both have a tax credit associated with them. The EV credit ($7,500) does not roll over to next year, but the solar ITC does. I have enough tax burden to utilize these credits this year. However, given the current GOP tax plan, the EV tax credit might disappear in 2018. I am considering purchasing another EV this year (originally was thinking of doing next year, but the credit might not exist next year now).

Question: In which order will the EV and solar credits be applied? I think I will have enough tax burden to utilize almost all of the two EV credits ($15k, and I think I can claim two), but I will need the solar credit to roll to next year. Can I do that?

Answer 1

We've received the solar tax credit but even though we own a pair of EVs, they were purchased used and ineligible for the tax credit.

As you've noted, there's no roll-over for the EV credit. Be sure to place that credit in the correct place on your tax form.

My source for this part of the answer is the company that sold us the solar panels, which makes it only slightly suspect.

Solar credits can be applied until used up, unless repealed. You will determine how much credit to apply when you complete the form. If you do not apply the full amount to which you are entitled, the remainder will be available to enter on the following year.

I'm not a tax advisor and I don't play one on television, nor did I stay at a Holiday Inn Express. To be certain of this sales-backed information, one would want to consult a qualified tax advisor, but the odds are good that it's to your benefit.

Regarding the EV portion, a quick consultation with The Google presents this information direct from the IRS:

Use this form to claim the credit for certain plug-in electric vehicles. Claim the credit for certain alternative motor vehicles on Form 8910. Use a separate column for each vehicle. If you need more columns, use additional Forms 8936 and include the totals on lines 12 and 19.

The link to the form is located via the same search, form link here in PDF.

"Use a separate column for each vehicle" would lead one to believe that your multiple vehicles are covered. I believe that if the manufacturer has sold more than permitted to be covered by the tax credit, you will not be eligible, but have not pursued that line of research.